Unless I am missing something, you want to use a select like like so:
<nav class="floatfix">
<ul>
<li><a href="index.php">Home</a></li>
<select id="lstPrice">
<option value="3.99">£3.99 T Shirts</option>
<option value="4.99">£4.99 T Shirts</option>
</select>
<li><a href="login.php">Log In</a></li>
<li><a href="#">Account</a></li>
<li><a href="feedback.php">Feedback</a></li>
<li><a href="#">Checkout</a></li>
<li><a href="aboutus.php">About Us</a></li>
</ul>
</nav>
Not even going into the CSS you need to enclose the secondary UL in the Home LI like below:
<nav class="floatfix">
<ul>
<li><a href="index.php">Home</a>
<ul>
<li><a href="index2.php">£3.99 T-Shirts</a></li>
<li><a href="index3.php">£4.99 T-Shirts</a></li>
</ul>
</li>
<li><a href="login.php">Log In</a></li>
<li><a href="#">Account</a></li>
<li><a href="feedback.php">Feedback</a></li>
<li><a href="#">Checkout</a></li>
<li><a href="aboutus.php">About Us</a></li>
</ul>
</nav>
CSS stolen from a quick tutorial:
ul {
font-family: Arial, Verdana;
font-size: 14px;
margin: 0;
padding: 0;
list-style: none;
}
ul li {
display: block;
position: relative;
float: left;
}
li ul {
display: none;
}
ul li a {
display: block;
text-decoration: none;
color: #ffffff;
border-top: 1px solid #ffffff;
padding: 5px 15px 5px 15px;
background: #1e7c9a;
margin-left: 1px;
white-space: nowrap;
}
ul li a:hover {
background: #3b3b3b;
}
li:hover ul {
display: block;
position: absolute;
}
li:hover li {
float: none;
font-size: 11px;
}
li:hover a { background: #3b3b3b; }
li:hover li a:hover {
background: #1e7c9a;
}
Demo: http://jsfiddle.net/calder12/7j6H9/