Yes Mark, when you right click on the item in Prospector it gets selected, but in the case of watershed, there is no preview available for display in the item view. So we display the grey box. Hopefully, in the future we can get this, and other items to display previews.
Also, we decided to keep the item view area visible, but empty, so that users would not see the management tree view bop up and down (which looked very messy).
--dunc++
Dunc Sargent
Autodesk, Inc.