It is just another ul, li, list in html, but unfortunately you will have to create your own JavaScript to handle collapsing *accordion style" or hiding "cascading style". I handled it by rewriting vbulletin-core.js and then adding some simple support JavaScript to handle the collapsing and hiding.
Popupctrl does not natively support hover, but that is an easy fix, but you will want to add a mouse-over, mouse-out event/feature or it will be a lousy experience for the end user.
Take a look at a few menus over at directdrive.com. I can help you further when you have a more direct question. Good Luck!
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