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If you go - from left to right - from one sub-menu to the next top level item then to the next sub-menu then to the next top level item and keep going like this you'll end up with all sub-menus opened.
To "fix" this I had to use "z-index" to reverse the natural stack order.
That did not fix everything though; the problem still exists with the last sub-menu since it is offset to the left.
The interesting part is that Safari 1.3 does not exhibit this odd behavior.