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CLick on the "program file locations" button and add the directory that the beta is in. Should be partypokerbeta or something like that under program files.
Do similar thing for your observed hands.
It will pick them right up.

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I was in this part of PT, do I remove the old PP info on there. All i get is space for one directory for PP and one for each x-skin, Do i just have to change this manually each time I switch from regular PP to beta? I tried seperating both directories with a comma but it didn't let me do this.

Also has anyone tried opening the beta and regular clients together to play more then 10 tables. I would try this but i recently had to switch to dial up.