[SOLVED] Does menu 2 Categories have tab drop down.

I am using WP3.1.1 Atahualpa 3.5.3.

To get more space on my side Column I wanted to us the Categories menu bar instead of the side Widget. Created a menu and put it in menu position 2. changed Header area to %pages %cats and got my 2 menu bars. Pages bar and just below the Categories bar.
Now the page menu bar has drop down tabs working OK but the Categories menu bar does not have drop down tabs although I have the categories set as the parent. Is this normal not to have drop down tabs on the categories menu bar or have I missed something. I tried to remove the page menu bar but it made no difference
I do not have a URL as it is on my localhost test site. I always check any changed or plugins on this localhost before I do anything to my actual site.

Thanks, Bob