REQ....BOM HELP

I am not sure what the problem is since this seems to be the basic function of the BOM. If you specify that the BOM is single level it will accomplish everything you want at both levels. That is if your second level is an assembly and not a part file, but you said the second level is showing correctly. I presume that you are currently getting the steel part numbers added to the bill.
There are 3 options for the old Excel Bill
Show parts only. (This will show the lowest level parts and not their assemblys)
Show top level subassemblies and parts. (this will show only models and assemblies inserted directly into this assembly. This is the option you want if I understand you correctly)
Show assemblies and parts in an indented list. ( this will show you every Model and Assembly in a heierarchy that will look much like the design tree with subassembly parts indented under the subassembly they belong to)
Another thing that will help if funny situations come up is in the Properties of each configuration in an assembly you can specify wether you want the components to be blocked from uplevel bills. This would override ShowParts only and Show Assemblied and parts in an indented list.
In the new style BOM these options are called
Parts only Top Level Only Indented Assemblies
Respectively. They are found under BOM Type in the Property Manager
Clear as mud?
Corey