This works for me:
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" />
<style type="text/css">
#menu {
list-style-type: none;
padding: 10px;
white-space: nowrap;
text-align: right;
background-color: #505050;
margin-left: 3px;
margin-right: 3px;
}
#menu :link, #menu :visited {
color: #ffca00;
text-decoration: none;
padding: 10px;
}
#menu li {
display: inline;
background-color: #505050;
}
#menu li :hover {
background-color: #707070;
}
</style>
<title>Menu Thangy</title>
</head>
<body>
<div id="header">
<ul id="menu">
<li><a href="index.html">Home<a></li>
<li><a href="news.html">News<a></li>
<li><a href="screenshots.html">Screenshots<a></li>
<li><a href="download.html">Download<a></li>
<li><a href="about.html">About<a></li>
<li><a href="questions.html">Questions<a></li>
</ul>
</div>
</body>
</html> as seen
here