Jade,
I managed to get it 98% fixed. The result is usable, but not what I really wanted. Here is the last section of the menu code that now produces a more desirable result:
<li class="submenu"><a href="<?php echo zen_href_link(FILENAME_ACCOUNT, '', 'SSL'); ?>"><?php echo HEADER_TITLE_MY_ACCOUNT; ?></a>
<ul class="level2">
<?php if ($_SESSION['customer_id']) { ?>
<li><a href="<?php echo zen_href_link(FILENAME_LOGOFF, '', 'SSL'); ?>"><?php echo HEADER_TITLE_LOGOFF; ?></a></li>
<?php } else { ?>
<li><a href="<?php echo zen_href_link(FILENAME_LOGIN, '', 'SSL'); ?>"><?php echo HEADER_TITLE_LOGIN; ?></a></li>
<li><a href="<?php echo zen_href_link(FILENAME_CREATE_ACCOUNT, '', 'SSL'); ?>"><?php echo HEADER_TITLE_CREATE_ACCOUNT; ?></a></li>
<?php } ?>
<?php if ($_SESSION['cart']->count_contents() != 0) { ?>
<li class="submenu"><a href="<?php echo zen_href_link(FILENAME_SHOPPING_CART, '', 'NONSSL'); ?>"><?php echo HEADER_TITLE_CART_CONTENTS; ?></a>
<ul class="level3">
<li><a href="<?php echo zen_href_link(FILENAME_CHECKOUT_SHIPPING, '', 'SSL'); ?>"><?php echo HEADER_TITLE_CHECKOUT; ?></a></li>
</ul>
</li>
<?php } else { ?>
<li><a href="<?php echo zen_href_link(FILENAME_SHOPPING_CART, '', 'NONSSL'); ?>"><?php echo HEADER_TITLE_CART_CONTENTS; ?></a></li>
<?php } ?>
<li><a href="<?php echo zen_href_link(FILENAME_SHIPPING); ?>"><?php echo HEADER_TITLE_SHIPPING_INFO; ?></a></li>
<?php if (MODULE_ORDER_TOTAL_GV_STATUS == 'true') { ?>
<li><a href="<?php echo zen_href_link(FILENAME_GV_FAQ, '', 'NONSSL'); ?>"><?php echo HEADER_TITLE_GV_FAQ; ?></a></li>
<?php } ?>
<li><a href="<?php echo zen_href_link(FILENAME_DISCOUNT_COUPON, '', 'NONSSL'); ?>"><?php echo HEADER_TITLE_DISCOUNT_COUPON; ?></a></li>

<li><a href="<?php echo zen_href_link(FILENAME_ACCOUNT_NEWSLETTERS, '', 'SSL'); ?>"><?php echo HEADER_TITLE_NEWSLETTERS; ?></a></li>
</ul>

</li>

</ul>
What I would really like in the last <li> item is IF the customer is logged in (so we know who it is) and IS already subscribed to the newsletter, then show the "UNSUBSCRIBE" link, ELSE show the general "NEWSLETTERS" link. If I can't do that then I will change the text in the newsletters form area to say something like "If you are already subscribed to our newsletter and wish to UNSUBSCRIBE, uncheck the box and click UPDATE".
BTW I understand that if I send out an HTML newsletter it automatically appends an unsubscibe link at the bottom. Do I have to have the Admin>Configuration>E-mail Options>Display "Newsletter Unsubscribe" Link? set to 'true' for this to happen AND to receive the customer's request from the link?