Color issues with page menu bar

Hello:

I'm working on fixing an issue I'm having with the background color for the page menu category bar.

I am using wordpress version: 3.0 and Atahualpa version: 3.4.9

www.dunceuponatime.com

If you look at the page menu, the background cuts off from the chosen color and displays a white background. I tried looking through the forums, and I couldn't find someone with a similar problem. Does anybody know why this might be occurring? No modification has been done to the actual css file yet. I tried shutting off all the widgets, and it still renders it weird.

Thank you for your time.