Ive got it to start displaying correctly now.
I think it must have been something to do with the css file.
i copied the css file for the static menu which was working ok to the folder of my dynamic menu
renamed all the css classes from cssmw1 to cssmw2
uploaded and its all working tickety boo, would still be intrested to know what was up with the css generated, as i was using the same design template from the static menu....