That's pretty much how we do it here.  We have a type O item for each feature/option, with the subassemblies underneath that. The end-item is a type F, with all of the type O items underneath it.  You have to make sure that anyone entering a F/O item understands the hierarchy, as there is no logic to prevent you from creating an illegal configuration, and the item description fields are small, so it can be difficult for some one not familiar with the subassemblies to choose the wrong thing.
 

Thank you , I do have the 99 and that is very helpful- learn something new everyday!
 
I am not clear yet on what the hierarchy problems might be- could you give an example of a problem. In the 1000 Desk sample it shows several different hierarchies so just want to make sure I am not missing something.
 
We would most likely have:
 
F
 A
 O
   A
 
But may have other configurations, so just want to make sure we set it up correctly.  
     
 

Is it possible to choose more than one option in a list of options? i.e. Part 1400 type O has 4 choices. All or any combination can be chosen or not. Can they be under type O or do you have to make separate Type Os for each choice in order to have them all.

[size=6]you need to add 1 more layer for parallel selection
 
to do this you need to add 4 type O items with the A's under them
that way you can select several of them if you wish.
 
I posted an example bom like this a while back I believe.
 
heres an example
 
this is the top level
item 4 has is a multiple select sub bom  OP06LDUOENTRY
 

Parent part: CLLD06005000000 ldud 6in cl feed assembly
Type       : A                                                    ROHS Compliant:
 
Level       Component        Description                        Qty Required UM   T RC Scrap   Seq  RtNum  Reference            Lin
----------  ---------------  ------------------------------ ---------------- ---  - -- ------  ---  -----  -------------------- ---
.1          OP06LDUPROLL     06in ld upper roll option                  1.00 EA   O      0.00    0     0                          
.1          OP06LDLRROLL     06in ld lower roll option                  1.00 EA   O      0.00          0                          
.1          OP06LDUOPINCH    06in ld pinch pressure optio               1.00 EA   O      0.00    0     0                          
.1          OP06LDUOENTRY    06in ld stock entry option                 1.00 EA   O      0.00          0                       
.1          OP06LDUOTOPPLT   06in ld top plate option                   1.00 EA   O      0.00          0                          
.1          OPLDUOGEARING    ld gearing option                          1.00 EA   O      0.00    0     0                          
.1          OPLDUDRATIO      ldud pulley ratio option                   1.00 EA   O      0.00    0     0                          
.1          OP06LDUDMTR      06in ldud motor option                     1.00 EA   O      0.00    0     0                          
.1          OPLDUDCABLE      ldud motor cable options                   1.00 EA   O      0.00    0     0                          
.1          OPPUSHBUTTON     universal push button option               1.00 EA   O      0.00    0     0                          
.1          OPJOGSTATION     jog station options                        1.00 EA   O      0.00    0     0                          
.1          OPUODRIVE        universal drive option                     1.00 EA   O      0.00    0     0                          
.1          OPUOREGEN        regen options for feeds                    1.00 EA   O      0.00    0     0                          
.1          OPLDMOUNTS       ld mounting options                        1.00 EA   O      0.00    0     0                        
.1          OPUOOPTIONS      mish feed options                          1.00 EA   O      0.00    0     0                      
.1          PSHRD10001       ldud fastener kit                          1.00 EA   B      0.00    0     0                        
.1          WI0LD06XUDCK     ldud 6in feed body                         1.00 EA   B      0.00    0     0                      
 
 
 

 
this is the OP06LDUOENTRY    06in ld stock entry option level   (4th item down in above list)
 
you can pick / check off as many as you want and then hit f10 to select from these sub lists.
so you can pick 1 or more of these as you want.
 

.1          OP06LDUOENTRY    06in ld stock entry option                 1.00 EA   O      0.00          0                          3
..2         OP06LDPENCIL     pencil roll option - standard              1.00 EA   O      0.00    0     0                          
..2         OP06LDCASCADE    cascade roll option                        1.00 EA   O      0.00    0     0                          
..2         OP06LDANTIBACK   antibackup manual option                   1.00 EA   O      0.00    0     0                          
..2         OP06LDAIRBACK    antibackup air operated option             1.00 EA   O      0.00    0     0                          
..2         OP06LDSCSG       scsg option                                1.00 EA   O      0.00    0     0                          
..2         OP06LDLGHSG      light stock guide option                   1.00 EA   O      0.00    0     0                          
 

 
Under each of these O's are 1 or more type A's that you can select only 1 of