This is the discussion topic for the Hierarchical Menus extension.
Visit http://extensions.pivotx.net/entry/33/menu for more info or download.
22-2-2012: The extension's active file contained no identifier so a new minor version (1.0.1) is released correcting this. This new version will not show up on the dashboard as a new version. Every one is encouraged to download this new version through the link above.
21-11-2013: A new version (1.1) has been released! It fixes the problem that level 3 and onwards weren't created correctly, introduces subcounter and includes a sample css to show what styling can do.