What is the "foreign source amount included in dividends" amount they are asking for box 7, item D? Is it the total dividends paid by that European or Asian mut. fund?

If the dividends are from a mutual fund that by it's title is non-US such as European only or Asia or Pacific Rim or foreign country specific, then it is reasonable to assume that those dividends paid are foreign sourced. If the mutual fund is "global', then it may have US sourced mixed in with foreign sources. In that case, on the payer's website, they will indicate the ratio of the dividends that are foreign sourced.