The menu actually works fine on both examples or poorly on both examples. What causes it to work or not work is the width of the window that the page is displayed in. One thing I noticed in the documentation that you did not strictly adhere to and that might cause a problem is:

Originally Posted by
HV Menu config.htm
Height
Number- The pixelheight of the element.
Must have a value for each element that ends with 1 (Menu1, Menu5_3_1) In all other elements this may be 0.
Elements in a vertical column may have different heights, all elements in a horizontal row get the height of the first element in that row
Width
Number- The pixelwidth of the element.
Must have a value for each element that ends with 1 (Menu1, Menu5_3_1) In all other elements this may be 0.
Elements in a horizontal row may have different widths, all elements in a vertical column get the width of the first element in that column
Instead of zero, you have simply put nothing at all. Fixing this might help fix your problem.
also:
Code:
var SecLineFrame='space'; // Frame where sub levels appear
var DocTargetFrame='space'; // Frame where target documents appear
both of these should be set to 'self' for your set up.
Those are just a few things I noticed right away, there could be others. Why not go over it yourself if these don't do it.
It is possible that once everything is as it is supposed to be things may still not work, then your menu is simply too wide.
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