Look up something called "chromeless windows." Granted You would have to popup a window, and position it.... but the window would be borderless, titlebarless, everything less....chromeless windows have no window frame or anything. I had chromeless.js somewhere, but I can't seem to find it...but a good search of google will load plenty of options for the chromeless window option. I had the same problem with a site once, and even though IT IS a popup window, it doesn't look (or act) anything like one. It solved my situation. You might want to give that a shot.

But the awful news that I just found out (This is a post edit), is that IT DOES NOT WORK in Firefox. It may only be IE complient

Yep, you're probably thinking of IE's "modal dialogs".

Do the menus have to be dropDOWN? Can they be arranged horizontally instead of vertically:

| Menu | Menu |
MenuItem MenuItem MenuItem

It is an application so the browser's tollbars are removed, so is the menu. I have to rebuild a menu similar to any applications menu (File, edit, ...). So, yes they have to be dropdown style.

Take a look here :
I did i menu over frames with layers, but it doesnt work with Safari on Mac.
www.tracadie-sheila.ca is the web site.

Dont need any anymore. BTW if I click in your side menu frame and drag to the right, it will move.

Oups!
Thank you for your comment!
I havnt seen that