The explorer integration is a great feature. However, displaying the full pathname to selected files/folders makes the context menu a huge dialog. If only the file/folder name would be displayed instead (without the path), the context menu would be much more compact.

Is there any way to achieve this?

Totally agree.

Sometimes the context menu takes more than half of the screen. And that's on 1600x1200 resolution, on lower it may even not fit into the whole screen
Paths definitely should be intelligently shortened if exceeding certain length, like
C:\Doc....\Desktop\test.txt instead of
C:\Documents and Settings\Administrator\Desktop\test.txt
(me thinks drive and last folder should remain visible)

I think also the preceding text "Load in first frame: You have selected" should be shortened to a few characters, for example [1*] - now it is nearly 40 characters.

Now the shell integration is practically unusable.

This isn't a solution, but if you disable autoselect (Options->Configuration->General->Enable AutoSelect) the context menu won't become obscenely large until you deliberately select a file.