Here's the indented result:

exampleImage.jpg

Here's a test with no swapping images
http://jsfiddle.net/Cq5JY/

If we replace the background image with the "swappable" sprite technique image, like the one here:
myZoomNavIconDashBoard.png

I'm thinking that, perhaps, if we give more space between the states, this will work, BUT in order to make a menu like the intended one, let me ask this first: Am I on the right track ? If not, what would be a proper/common way for achieving this?

Please advice,
mem