Why not just add an image inside the first menu item's HTML markup; to essentially remove it from being a link, you can just set its href attribute to "#" and the mouse cursor when over it to "default":
Code:
<li><a href="http://www.dynamicdrive.com">Item 1</a></li>
<li><a href="#">Folder 0</a>
<ul>
<li><a href="#"><img src="bunny.jpg" style="width:150px; cursor:default" /></a></li>
<li><a href="#">Sub Item 1.1</a></li>
<li><a href="#">Sub Item 1.2</a></li>
<li><a href="#">Sub Item 1.3</a></li>
<li><a href="#">Sub Item 1.4</a></li>
<li><a href="#">Sub Item 1.2</a></li>
<li><a href="#">Sub Item 1.3</a></li>
<li><a href="#">Sub Item 1.4</a></li>
</ul>
</li>
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