I believe you're talking about the custom selection of pages option that comes with our navigation. However, when you choose it, you can't drag and drop the items in some custom position as you mentioned. To easiest way to achieve similar functionality with RadListView would be to have a custom radTreeView template and on itemDataBound to expose (set visiblw to True) only items, that suit some condition. To map the template you should follow the first approach from this blog post.
You simply need to create an ascx file in your project and in the LayoutTemplatepath of the dynamic widget enter the relative path to this template, and your widget will start using the template. Another option would be to use the FilterExpression property, which can be found in the designer of the widget under Advanced -> ControlDefinition -> Views -> DynamicContentMasterView. Here's a sample FilterExpression, which will return items, created after 3/2/2013:
Visible = true AND Status = Live AND DateCreated > (3/2/2013)
The third option ismodify the designer of the widget, according to this blog post and implement your own logic for choosing items - for example add a DynamicContentSelector, which will allow you to choose dynamic content items and set them again to the filter expression, so that only those items will be visible on the front-end.
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