Specifying type description when using a view

I can't seem to work out how to specify the 'type' when using a view for the drop downs which means I get 'Select already available' and 'create a new' ..

This also means I can't create a new as it doesn't know what it's supposed to be creating!!

Or is it that I haven't properly understood what 'Use the view's "fields" section to display additional informations about candidate nodes on node creation/edition form' means and my view should be providing something extra?

I tried setting the type as well as the view thinking that might help but that gives me a very odd error

though it does seem to persuade the module to show the description Select Event already available or create a new Event