[Lynne]

It's this at the bottom of the navbar:

    <if condition="$show['member'] AND $notifications_total">
    <!-- notifications menu -->
    <div class="vbmenu_popup" id="notifications_menu" style="display:none">
        <table cellpadding="4" cellspacing="1" border="0">
        <tr><td class="thead" colspan="2">$vbphrase[your_notifications]</td></tr>
        $notifications_menubits
        </table>
    </div>
    <!-- / notifications menu -->
    </if>

You can do a search in your php files for "$notifications_menubits" to find the actual function/code for it.