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Originally Posted by balinor

Have you had a look in the Custom Mods forum? I believe I saw a mod that doees this a while back...

I searched for hours through the Template customization forum and the entire x-cart forums without success. I was surprised not to find posts regarding this, so it must be somewhere...

However, I managed to custom code the menu, and will post the code here next week, after all is done.
For anyone else looking for this, the logic I used is to get all the products in a variable, and loop through that variable to create a DHTML menu (changes in categories.tpl); then I use a template call for every product that is listed.)

I tried two kinds of menus, one is displayed on click of the mouse, and the other on hover/mouseover. They both work very well.

Of course, stores with very large product databases should take care of speed/performance issues with getting the entire list of products into menus.