Ok here are something things.....
am getting a javascript error, line 9 char 1 (body tag) object expected
I see no errors whatsoever on IE6/WinXP, what browser and OS are you using?
any page with this menu on it hangs completely in Opera - status bar will show between 7k and 16k loaded then it stops, white screen and never moves beyond that point
I loaded it in Opera 7 on my computer and it loaded fine...same question as above.
Having trouble getting the styling to match the version 3 I had up, in particular the white borders around the subs. Click any link in the menu above to go to a page with the old menu in action to see difference
In your style called dropStyle you have a property called bordercolor set to ffffff, this is setting the border around the entire sub to be white. Comment out the line along with the borderstyle and borderwidth properties to remove it. Also you have borderwidth set in each menu definition, this also needs to be removed to get rid of the border around the menu.
The IE specific filter effects did not translate and I'm not having much luck finding documentation on them for v5
Menu styles have an overfilter and and outfilter which can be set to any of the filters that we used in v3. You have effect set to a filter at the top of your file. Set overfilter = effect in your dropStyle and that should do it.
Hope this helps solve some of your problems. Let us know if you need ANY more help with the Milonic DHTML Menu!