Sca123,
I had the exact same issue when I first started. It's hard to get your head around how SS does the nav, but after you get it, you'll see how smart the people where at SS.
Instead of explaining I'm just going to give you my code and you can see it in action at: http://www.radimage.com
Note: I only go 3 levels deep on the menu. Also, I made the sidebar as an includes in the templates.
Hope this helps and is what you are looking for.
Terry
<CODE>
<div id="Sidebar" class="typography">
<div class="sidebarBox">
<ul id="menu">
<% control Menu(1) %> <!-- Level I -->
<li class="m$ID $LinkingMode"><a href="$Link" target="_self" class="a$ID">$MenuTitle.XML</a></li>
<!-- for expanding out the first menu -->
<% if URLSegment = rit113-imrt-qa-software %>
<% if LinkingMode = link %>
<% control Children %>
<ul id="smenu">
<li class="m$ID $LinkingMode"><a href="$Link" title="Go to the $Title.XML page" class="sa$ID">$MenuTitle</a></li>
</ul>
<% end_control %>
<% end_if %>
<% end_if %>
<!-- end for expanding out first set of menu items -->
<% if LinkOrSection = section %>
<% if Children %>
<% control Children %>
<ul id="smenu">
<li class="sm$ID $LinkingMode"><a href="$Link" title="Go to the $Title.XML page" class="sa$ID">$MenuTitle</a></li>
<% if LinkOrSection = section %>
<% if Children %>
<ul id="ssmenu">
<% control Children %>
<li class="ssm$ID $LinkingMode"><a href="$Link" title="Go to the $Title.XML page">$MenuTitle</a></li>
<% end_control %>
</ul>
<% end_if %>
<% end_if %>
</ul>
<% end_control %>
<% end_if %>
<% end_if %>
<% end_control %>
</ul>
</div>
</div>
</CODE>