Component not selected error

When trying to import files I receive an error.

The following are the steps I used to get the error:
1. Open wixedit v0.7.5.
2. Go to file and press new.
3. Press next on the wizard window that appears.
4. Select PFiles
5. Press Import files
5. A message box says that I need to select a component in the component tree first even with a directory selected.

I expected that it would use the selected folder in the tree as the component and then create one as needed instead of making me right click on PFiles, create a component, name the component, and then import the files.