in the template change the code for the nav editable region to be all on one line.
change:
<div class="navmenu">
<!-- TemplateBeginEditable name="navmenu" -->
<!-- TemplateEndEditable -->
</div>
to:
<div class="navmenu">
<!-- TemplateBeginEditable name="navmenu" --><!-- TemplateEndEditable -->
</div>