This is really a z-index issue with the CSS menu you're using actually, and not with Featured Content Slider per say. In your CSS, I'd try and give the "#navigation" ID a high z-index to see if that fixes the problem:
Code:
.navigation {
position:relative; /* establish a menu-relative positioning context */
float:left; /* play nicely with others */
margin: -15px 7px;
z-index: 1000;
padding:0;
border:0;
height: inherit; /* the menu's overall height */
width:100%; /* we always want our menu to fill the available space */
/*background:#f3f3f3;*/
font-family: Verdana, Arial, Helvetica, sans-serif;
font-size:12px; /* this (and also below) sets the menu's font size */
/* border-bottom:1px solid black; give us a black border underneath */
}
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