Linda, belated thanks for your answer. It it right to the point and much appreciated.

What I don't understand now is why there are only 5 product types, one of which is "Product - Music", when the most popular of all "Product - Download" isn't there?

A Downloadable product is very much like a Music product, but I suspect that for a downloadable product I should't select "Product - Music" but rather "Product - General" as its type. Am I correct?

Is there a way for me to add a 6th product type ("Product - Downloadable Software")? Or is it simply not necessary?

Thanks again for alleviating my confusion.