Hi James,
If you don't get the mod_rewrite sorted out, you could consider this:
At the moment you have all the Parent (level-0) links pointing to index.php. If you go to any of those or their children (level-1, level-2 etc) then the Parent link (being index.php) will show the current (also hover) state.
You will need to change the parent links in one of two ways, - either pointing it to the first child link of that page, or creating a generic page for that category, i.e:For the 'Tops' parent link, you could either direct it to (say) 'top_kid.php', or create a page that perhaps shows an item from each of the three categories with a link to each of the three child pages ('top_kid.php', 'top-junior.php' and 'top-miss.php').
Incidentally, some of your menu links are wrong; - all of the links in the menu that contain a 'dash' (-) should instead contain underscores ( _ ) as the page names have underscores. It makes the page quite difficult to follow the link-throughs (is that a word?).
An example of a menu structure that has the parent (level-0) links pointing to the first of the level-1 links, and with the dashes replaced by underscores would be:
<ul class="level-0" id="cssmw">
<li><span><span><a href="index.php">Home</a></span></span></li>
<li class="parent"><span><span><a href="hats.php">Accessories</a></span></span>
<ul class="level-1">
<li><a href="hats.php">Hats</a></li>
</ul>
</li>
<li class="parent"><span><span><a href="top_kid.php">Tops</a></span></span>
<ul class="level-1">
<li><a href="top_kid.php">kids</a></li>
<li><a href="top_junior.php">juniors</a></li>
<li><a href="top_miss.php">misses</a></li>
</ul>
</li>
<li class="parent"><span><span><a href="pant_junior.php">pants</a></span></span>
<ul class="level-1">
<li><a href="pant_junior.php">juniors</a></li>
<li><a href="pant_miss.php">misses</a></li>
</ul>
</li>
<li class="parent"><span><span><a href="dress_junior.php">dresses</a></span></span>
<ul class="level-1">
<li><a href="dress_junior.php">junior</a></li>
<li><a href="dress_miss.php">missy</a></li>
</ul>
</li>
<li class="parent"><span><span><a href="activwear_women.php">activewears</a></span></span>
<ul class="level-1">
<li><a href="activwear_women.php">women</a></li>
</ul>
</li>
<li><span><span><a href="store_list.php">store list</a></span></span></li>
<li><span><span><a href="contactus.php">Contact Us</a></span></span></li>
</ul>
<script type="text/javascript">if(window.attachEvent) { window.attachEvent("onload", function() { cssmw.intializeMenu('cssmw',{select_current: 1, orientation: 2}); }); } else if(window.addEventListener) { window.addEventListener("load", function() { cssmw.intializeMenu('cssmw',{select_current: 1, orientation: 2}); }, true); }</script></td>
Changing that in your template should update all your pages (but possibly not the index.php page - so you may have to make the same changes there).
The index.php page that opens would not have the 'Home' link in current state by default, but if you added a meta refresh to the existing index.htm page: <meta http-equiv="refresh" content="0;URL=index.php" /> then it could (depending on your server's config) recognise that first, redirect to index.php - and then the 'Home' link would have current state from the start. If index.htm (with the refresh) doesn't do it, then save it as index.html and upload that which should do it.
An example of how that would work can be found temporarily here.
It's also possible that I may be missing the point here?