This looks simply like a CSS issue. The menu does drop down, but the links within the drop down menu are rendered strangely. My guess is it has something to do with the fact that the HTML for the menu is currently contained inside the DIV:
Code:
<div class='menubar section' id='menubar'><div class='widget HTML' id='HTML2'>
And inheriting the CSS being applied to these DIVs as well. Try moving the entire HTML for Chrome Menu outside any container other than the BODY (ie: right above </body>) to confirm this.
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