How to get the new team menu?

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I cannot see your xml file. Get Satisfaction allows html elements in posts and comments and this often messes up xml data. You could send it to us via email if you wish, or escape the less-than and greater-than symbols.

Urban Turtle displays a team on the team menu when the team's Tfs Security Group has access to the project (such as being a member of the project's Contributors group) and when the current user is a member of the group. The team menu is only displayed when there are teams to list.

We recommend that you create a Tfs group (at any level, server, collection or project) for your team, assign members to it, and then assign this group to the project's Contributors group.

My team's Assign To list is much shorter than expected. There are 16 TFS groups defined for the project and yet there are only 10 individuals showing up on the Assign To drop-down. Attempting to expand this list, I've added a global.settings file in order to enable the Team menu and added one of the existing TFS security groups to the tfssecuritygroup as a start.
The Team menu shows up on the tool, with the new team I defined, but the Assign To drop-down did not change. I've refreshed the cache from the tool as well as the TFS cache at D:\users\l\AppData\Local\Microsoft\Team Foundation. I've also restarted our IIS process for the server TFS runs on and still the Assign To does not change.
I only added the Team Configuration section, as specified in the Team Management PDF doc, to the global.settings file.
What am I missing?

Clarification: D:\users\\AppData\...

Another question you've heard many times - where do I look to see what the default TFS security group is being use to populate the Assign To list?

Just to make sure, are we talking about the "Assign tasks to" list found on the task board toolbar, or the Assigned To field found in the work item editor?

Yes, the "Assign task to" list on the Task Board.

I think I see what's happening. Since the list is based upon individual members in a TFS security group(s) for the project, UT is parsing through all the project’s
Security groups and creating the list from users who are individually listed in the groups. Therefore, although I have multiple security groups, I've verified that only 10 users are individually listed thoughout. Can you verify that you've seen this behavior before?

Yes, Urban Turtle only lists individual members from the TFS Security Groups and does not parse groups that are assigned to these security groups. This allows you to configure a group to represent all user with access to the project, and individual users to be listed on the assign tasks to list who are really the ones who can have work items assigned to them. For instance, in our case, only developers are visible on the list. The PO and ScrumMaster are part of a group and are not listed there.

You can also create a custom TFS Security Group, assign it to say, the Contributors group and configure a team to use that custom group and only individual members of this group will appear on the list when the team is selected.