A belated Christmas gift.
Here's a special test build with the the new logic I came up with to handle the dropdown navigation. Please let me know what you think.
http://download.flashfxp.com/beta/ffxp3.5.3.1225.zip
It supports every combination I could think of, However if you're on the local side and change drives obviously the ftp side can't keep up with that.
There may be bugs. Apart from myself no one else has tested this new code and I've only spent about 5 hours on it.