I still have the crafting function in the radial menu--but with a multi-class character sometimes the crafting options only show up in one of the class submenus, and not always the one that you would expect.
When I have arbitrary crafting set to on, I just click on the "craft item" icon (the one you seem to be missing), then click in the item. This works the same way as PNP crafting up to that point. ONce you have clicked, you should get a much wider range of options than under PNP crafting. Basically, any property in the toolset can be applied to any appropriate item. You don't have to worry about being able to cast a particular spell on the item, as you do with the PNP crafting. You just have to have enough caster levels to take the relevant feat(s), and you are all set.
Given the gold and experience costs, crafting , arbitrary or otherwise, is really only useful in high gold, high experience modules, preferably nonlinear ones that give you the opportunity to build up enough extra gold and exp to do some serious crafting without ending up at too low a level to complete the module.
