Ok, a couple things I notice.

-You are linking to a file - newest.dwt - but you are linking it as a CSS
document. Why isn't the file carrying a .css extension?

-You have some validation issues that need to be worked out. So put your
domain into the following page and fix those: http://validator.w3.org/

-Lastly, and most importantly you have changed the classes of the items within
the menu, thus breaking the javascript file which is looking for certain
classes.

The following page is the Spry Home Page along with Spry updates. Here you
will find samples and demos of the menu script and in those samples you will
see examples of how to style the Spry menu. I would suggest at this point
possibly re-creating the menu so that you have the proper classes attached to
the menus though.

http://labs.adobe.com/technologies/spry/home.html