If you are using IE5.5, you will be permitted to edit directly in the page. You can hit escape or click outside the outline to switch back out of edit mode on IE5.5. This is just like an alt-click, but applies to the currently selected outline item. All child items move with the selected item. The entry becomes a sibling of its parent.
All children move, too.
Just hit ctrl-x again to flip back to the visual mode. Bill Humphries created another XSLT for OPML that I just discovered. If you build it into a solution and real people find real value in your solution, then you have a moral obligation to charge as much money as the market will bear and keep the money.