Hello.
I have seen a few threads about the menu issue in IE7 and understand it is a CSS related problem with "position" and "z-index".
I cannot seem to figure it out on my site though.
The menu and submenu appears correctly, except if you hover over a submenu and there is text/image or what ever behind it, causes it to disappear as if you have moused off. It does stay active though if you are on the menus text.
Website demo:
xposedesign.com.au/nts/
I hope it is fixable and look forward to your reply.
Great job on the menu overall.
Thanks
Stef