Problems with the sub menus not dropping down in the correct positon usually have something to do with them being inside other container tags on the page that are positioned as well. Try moving all your sub menu DIVs plus the initialization script outside the main DIV container, so it's contained just by the <BODY> tag. One place is the bottom of your page, right above the </body> tag:
Code:
<!--1st drop down menu -->
<div id="dropmenu1" class="dropmenudiv">
<a href="http://www.dynamicdrive.com/">Dynamic Drive</a>
<a href="http://www.cssdrive.com">CSS Drive</a>
<a href="http://www.javascriptkit.com">JavaScript Kit</a>
<a href="http://www.codingforums.com">Coding Forums</a>
<a href="http://www.javascriptkit.com/jsref/">JavaScript Reference</a>
</div>
<!--2nd drop down menu -->
<div id="dropmenu2" class="dropmenudiv" style="width: 150px;">
<a href="http://www.cnn.com/">CNN</a>
<a href="http://www.msnbc.com">MSNBC</a>
<a href="http://news.bbc.co.uk">BBC News</a>
</div>
<!--3rd drop down menu -->
<div id="dropmenu3" class="dropmenudiv" style="width: 150px;">
<a href="http://www.google.com/">Google</a>
<a href="http://www.yahoo.com">Yahoo</a>
<a href="http://www.msn.com">MSN</a>
</div>
<script type="text/javascript">
cssdropdown.startchrome("chromemenu")
</script>
</body>
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