this works with 4.1
replace your vert.tpl file with this:
Code:
{* Vert Flyout Menu START *}
{if $config.General.root_categories eq "Y"}
<table class="vflyoutwidth" border="0" cellspacing="0" cellpadding="0">
<tr>
{foreach from=$categories item=c}
<td style="cursor: pointer;" class="vrootcatbg">
{$c.category|truncate:20:"...":true}
</td>
</tr>
<tr>
<td>
<div id="linkmenu{$c.categoryid}" class="vanylinkcss">
{foreach from=$allcategories item=cat}
{if $cat.parentid eq $c.categoryid}
{$cat.category|truncate:20:"...":true}
{/if}
{/foreach}
</div>
</td>
</tr>
{/foreach}
</table>
{/if}
{* Vert Flyout Menu END *}
let me know if this was helpful