I have a horizontal menu with dropdown lists that I made for my blog before I moved it to Wordpress. The menu is simply built using html and css styling. (To see it: http://www.iloveto.se/)

I've kept the menu since I like it and I would like to know if I can keep using it with WP. I'm using Atahualpa 3.4.9 and I added a widget in where I placed the menu as text.

On my old blog, this would list my archive:

<tag:archivelist>
<a href="${ArchiveLink}">${ArchiveName}</a>
</tag:archivelist>

And here it is in the dropdown menu:

<div id="navdropd">
<li><a href="#">Arkiv</a>
<ul>
<li><tag:archivelist>
<li><a href="${ArchiveLink}">${ArchiveName}</a></li>
</tag:archivelist></li>
</ul></div>

So what I'm asking is, can I reproduce this, and how?

Have you tried putting in a text widget?

I am using a text widget.
I know I could type it in manually like this,

<li><a href="http://www.iloveto.se/2010/11/">November</a></li>
<li><a href="http://www.iloveto.se/2010/10/">October</a></li>
...
...

But I want it to automatically add months as time goes. There must be some code I can use like the example in purple below, I'm just not too good with the php.

<li><a href="${ArchiveLink}">${ArchiveName}</li>

what you need to do is develop a widget that will read the archives and build the list or see if there is a plugin that comes close to what you want and then change it to what you need.