Merging child projects RH9

Question

I'm so confused right now that I don't want to look to see if there's an open topic because just one more piece of extraneous information will tank me.
I have studied the topic at http://www.grainge.org/pages/authoring/merging_webhelp/merging_method_rh8.htm, but I couldn't make it work and the words are swimming.
I used to do this on RH6 without even thinking two years ago, but I can't remember how I did it. What I remember is being told that all projects had to live on the C:\ drive, and publish to the server. You could not keep the project on the server and generate it there without experiencing problems (I don't recall what those were because I always obediently kept my projects on C:\).
So I began with setting Output to C:\Robohelp\Parent\!SSL!\WebHelp\_START_Parent.htm. I published it to F:\Policies\Published\ where it dumped the files at the root. I also tried creating "Parent" directories and publishing to F:\Policies\Published\Parent\_START_Parent.htm.I've tried other things as well, but if I'd love to know the correct path before moving on to the child project, since nothing worked. Has it changed? Do you maintain the projects on the server now?
I tried to recreate the nested hierachy suggested in the topic:
Parent
Project
     Child_1
     Child_2
But I'm not sure if that hierachy is for the Output path or the Published path because nothing seemed to work. That's my first question. Are we building that structure on the C:\ Drive (Output) or on the F:\ (Published Destination), or both?
So I set up the child project as C:\Robohelp\Project\Child1\!SSL!\WebHelp\_START_Child1.htm, and compiled. I published it to
F:\Policies\Published\
F:\Policies\Published\Projects
F:\Policies\Published\Child1
F:\Policies\Published\mergedProjects
F:\Policies\Published\Parent\
F:\Policies\Published\Parent\\!SSL!\WebHelp\mergedProjects
I changed the link on the "merged" icon many, many times. Nothing worked. I don't know which paths are incorrect, in what combination, or if they all are.
--- Has the source directory requirement changed? Do you maintain the projects on the server now?
--- Are we building that structure on the C:\ Drive (Output) or on the F:\ (Published Destination), or both?
--- How do you set up the Merge link?
Please point me in the right direction. Thank you!

Answer 1

I should mention that Figure 5 in that topic shows the Merged Project dialog floating over the Project Manager pod, suggesting that I go there, instead of into the TOC, to insert the merged project. However, my Merge Project icon is grayed out when I'm in Project Manager. I can only insert it from the TOC. So I'm thrown off by the steps in the instructions. Totally lost here.