[just_me]

Heh, it's been a while since I did that but here's where I have set z-index 1 in my css for category menus

 .fancycat-icons-scheme li:hover ul,
  .fancycat-icons-scheme li.over ul
{
  display: block;
  overflow: visible;
  z-index: 1;
}


.menu-fancy-categories-list .content {
  overflow: visible;
  padding-top: 5px;
  padding-left: 5px;
  padding-right: 6px;
  z-index: 1;
}

Hope that helps. If not, let me know and I'll take a closer look on Monday.

Have a nice weekend.