Refresh my memory. Its been so long since I've messed with this.
If I want to make a drop-down menu I need to disable to menus that I want to use in the drop-downs correct? Then I need to statically place them by name IE <!--System:Menu:Resources-->?

I think the easiest way to do a drop-down is to use the "Embedded" menu commands.

The Whole DKPSystem.com template: http://www.dkpsystem.com/settings/www/layout.html

This is the relevant section:

<!--System:StartEmbedMenus:Right:Menu-->
	<a id="menu_<!--Menu:SafeTitle-->" href="javascript:;" onmouseover="dyn_drop_down(this,dge('menucontents_<!--Menu:SafeTitle-->').innerHTML,null,null,true)" onclick="dyn_drop_down(this,dge('menucontents_<!--Menu:SafeTitle-->').innerHTML,null,null,true)"><!--Menu:Title-->&#9660;</a>
	<div id="menucontents_<!--Menu:SafeTitle-->" style="display:none">
		<div class=menubar_menucontents>
			<!--menu:Startitemlist-->
				<!--menu:startitem-->
					<div class=menulink>
						<a href="<!--Menu:Link-->" <!--Menu:popup-->><!--Menu:LinkName--></a>
					</div>
				<!--Menu:Enditem-->
			<!--Menu:EndItemList-->
			<div class=menubar_left></div>
			<div class=menubar_right></div>
			<div class=menubar_bottom></div>
		</div>
	</div>
<!--System:EndEmbedMenus-->

This will make a drop-down box for all the "Right" menus.

Hmm nice so looks like it is a little more common or supported than it used to be.

Whats the possibility of getting a new layout option then? What I'd really like to do is be able to specify menus that would be part o the dropdown while maintaining the Left and Right menus. So on the Menu administration page could possibly add a "Dropdown" section where we could place menus that would appear in the dropdowns and thus simply place that element on our layout.html and setup our menu.html accordingly to handle it? I guess that is why I orignally asked about disabled menus and getting them to show up in my dropdown as there are still menu elements I would prefer to keep on the left and right.

Weird, I remember writing up a response for you here, but it appears that I simply forgot to submit it.

In that case, you'll want to do single Embedded menus with <!--System:StartEmbedMenu:MenuName--> Instead of <!--System:StartEmbedMenus:(Right|Left)-->

http://www.dkpsystem.com/guide/EmbeddedMenus Should make it a little easier.