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Did you already find out how to do this?
I had a similar problem like this. Then finally figured out.
This is what I did with official demo data. and magento ver.1.0.
First, we have to have two or more attribute(eg; black color, white color).
Then, we are going to create simple product as usual(with color attribute).
Now, we have two simple products such as black t-shirt and white t-shirt.
Well, this is a bit complicated part. we are going to create Configurable Product.
And remember, “Only attributes with scope “Global”, input type “Dropdown” and Use To Create Configurable Product “Yes” are available.”
Probably, we can see color attribute(’cause official demo data has a color attribute). Check color attribute and continue.
Then, fill out required field as same as simple product. Do not forget stock availability, websites, and categories.
Finally, go to associated products tab. You can see a list which contain few products. Then click checkbox on a product you wish to group.
By the way, you can adjust price here. If price change with color,size or any attribute maybe useful.
Okey Dokey, check your website and see product detail. You can see dropdown menu you did above.
I am not sure this is what you are looking for, however I hope this may help you.
And excuse me my terrible english skill.