From your description it sounds like the menu will drop down, but you can't use any of the items in the dropped down area because another object is sitting on top of this part of the menu. It sounds like this main flash graphic is either in a higher layer or was added to the display list after the menu.
If you are using AS3 and adding the graphic through actionscript then you can reorder the objects so that the menu is on top. If this is a simple layer order problem then you can put the menu in a higher layer.
The menu / navigation is part of a template that is applied to each page. The main area flash / graphic is inserted into an 'editable region'.
Here is link:
Go to the products menu and hover your mouse below the menu, you will see the button highlighted is about 1cm above the mouse (firefox), in IE the hole navigation starts to dissapear as you move your mouse from left to right.
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