drewhunter/ShipNote — pull request #4 by bahoo (2013-08-20 00:12:36+00:00)
Title: Updating for Magento 1.7 to include packaging / shipment label creation.

Magento's SVN seems to be having trouble for me today, but here's a link to the relevant code from a mirror:

https://github.com/LokeyCoding/magento-mirror/blob/magento-1.7/app/design/adminhtml/default/default/template/sales/order/shipment/create/form.phtml#L83

It looks like these additions were part of 1.6, but I can only personally confirm this works with 1.7. I hope this helps someone else.