[MathewC]

				<div id="navigation">
                <ul>
                    <li><a href="/" alt="">View Profile</a></li>
                    <li><a href="/" alt="">Account Settings</a></li>
				<vb:if condition="$notifications_total">
				<li class="popupmenu notifications" id="notifications">
					<a class="popupctrl" href="usercp.php{vb:raw session.sessionurl_q}">{vb:rawphrase your_notifications}: <span class="notifications-number"><strong>{vb:raw notifications_total}</strong></span></a>
					<ul class="popupbody popuphover">
						{vb:raw notifications_menubits}
					</ul>
				</li>
				<vb:else />
				<li class="popupmenu nonotifications" id="nonotifications">
					<a class="popupctrl" href="usercp.php{vb:raw session.sessionurl_q}">{vb:rawphrase your_notifications}</a>
					<ul class="popupbody popuphover">
						<li>{vb:rawphrase no_new_messages}</li>
						<li><a href="private.php{vb:raw session.sessionurl_q}">{vb:rawphrase inbox}</a></li>
					</ul>
				</li>
				</vb:if>
<!-- Closes header tag -->
</div>

The padding of the popup menu has the same padding as the navigation div itself.