I am not seeing the item wrapping, my problem is however that the label is not formatted according to my styles. It looks like a standard hyperlink instead of a menu:
This is the formatting without my hyperlinked image:
This is it with the hyperlinked image:
I really appreciate your help.
You are way downlevel on the menu which is why it doesn't wrap. You need to upgrade, but then you'll have the wrap problem which I don't know the answer to fixing. It looks like you have a style sheet, looks like the link color is coming into play when you change to type=html and it seem to be applying itself to the whole menu. I can't make a suggestion since the menu is so far downlevel on how to fix it. We don't support downlevel because too many changes take place as they are upgraded.
I suggest you get the newest version, copy your 3 milonic base files and save them someplace to have them incase you have to revert for any reason, and try the new version with your image.
Well, I still need whatever you have on your page. If you could put a test page up at your site, with your stylesheet and such, that would be easiest, but if not, I need you to post the html code for the page, the css code for the stylesheet, and the menu_data.js code so I can try and make a page and test it to see what's going on. Make sure you use the code button above to open and close the code.