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The dropdown ("picklist") itself is created on the form level, used on whichever lead field you choose (you're right that you may have to create a new field in field managment, though I've just been manipulating existing ones). This is well documented in a number of discussion (as well as in the Foundation Replay modules):
In the Form Designer's Form Properties window, change your field type to "select," refresh the browser, then enter your picklist values in the "Value list" field.
Hope this helps.