Yep. Got the same error. I even changed the name of the first popup to One instead of shortcut to see if it was a reserved word problem but, same error. If it isn't already, you should pass this along to M$.

>Receive error 'Menu specified in ACTIVATE POPUP is already in use.'!
>
>Create Popup Menu (Shortcut Style)that has at least one Sub-menu with items on it. Use the mouse to navigate to a item on the Sub-menu and then press the 'Enter' key to select it. Error!!!!
>
>The following sample code snippet was generated using the menu builder.
>
>DEFINE POPUP shortcut SHORTCUT RELATIVE FROM MROW(),MCOL()
>DEFINE BAR 1 OF shortcut PROMPT "one"
>DEFINE BAR 2 OF shortcut PROMPT "two"
>ON SELECTION BAR 1 OF shortcut wait wind 'this is one...' timeout 2
>ON BAR 2 OF shortcut ACTIVATE POPUP two
>
>DEFINE POPUP two SHORTCUT RELATIVE
>DEFINE BAR 1 OF two PROMPT "second level"
>DEFINE BAR 2 OF two PROMPT "bar 2"
>ON SELECTION BAR 1 OF two wait wind 'second level...' timeout 2
>ON SELECTION BAR 2 OF two wait wind 'bar 2' timeout 2
>
>ACTIVATE POPUP shortcut
>
>Thanks for the help.