Hi, Get Em Fast. I don't have a link unfortunately as I'm testing on my local machine. I have however figured out what I'm supposed to do, or at least I've fiddled with it enough that I've done something that works for me.

For anyone who's interested, put your background images in:
div#nav-cat li
div#nav-cat li:hover
div#nav-cat li.submenu
div#nav-cat li.submenu:hover

then to push the text over a bit from the margin put the appropriate amount of padding in div#nav-cat li a

also in div#nav-cat li a, you need to change the width so that when you mouse over from left to right the pop-up menu doesn't disappear in IE. As default it's set to width:auto. My sidebox width is 200px, I put 10px of padding-left into that div so I set my width:190px and that worked for me.

hope that helps someone.