I just tried switching my Page Menu over to the new WP3 menu system.
However, when I do this, the parent level menu does not use the settings from the Atahualpa Menu 1 (Page Menu) options when there are child menus.
When it is just a parent level menu without a child then it uses the settings and the child level menus also use the settings. It even uses the Atuahalpa setting for the parent menu when you hover over it.
The example can be found here http://www.chesstournamentservices.com/events/
I am using WP304 and Atuahalpa 353 with both menu bug fixes.