Hello!
 
Instead of applying z-index to ul's and li's of your navigation, apply z-index to #masthead:
 
#masthead {
    ...
    z-index: 666;
}
 
Here's the problem, is that I have a dropdown nav which i have used before and am currently implementing into this website http://www.magnam.com/patrol/internal.htm

This is so far only working in IE6 since that is the audience the client is targeting  at the moment, but I will fix it for other browsers once i figure out the problem. Basically all header have a background image, so if i remove the image then the dropdown works fine but when i add it, the image overlaps the dropdown. I've tried setting z-index but that does not seem to work.

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