Hi,
That's really a question for a tutorial rather than a quick answer I'm afraid 
A quick overview would be that you give the anchors a width that suits your design and then decide if nested lists should be the same etc.
You also need to hide nested menus so when you show the first item (#nav li:hover ul{}) then at the same time you need to hide any deeper nested menus (#nav li:hover li ul{left:-999em}) and then you show the last level with (#nav li:hover li:hover ul{left
xpx}) - where xx px equals the width of the previous menu.
The drop downs should be position:absolute and you have forgotten to remove the default padding and margins from them.
To create a sub arrow you need to add a class to the item that is a sub trigger.
e.g.
Code:
<li><a href="#">iPhone</a>
<ul>
<li class="sub"><a href="#">iPhone4S </a>
Then you can target that in css and add a background image:
Code:
#nav li.sub>a{
background:#000 url(arrow.gif) no-repeat 98% 50%;
}
Here's a rough fix that should give the basic idea:
Code:
#nav, #nav ul {
margin:0;
padding:0;
list-style:none;
}
#nav { padding:0 0 0 10px }
#nav { margin-top:104px }
#nav> li a {
width:115px;
text-align:left;
padding:5px 0;
display:block
}
#nav> li {
width:115px;
margin:0
}
#nav li ul { position:absolute; }
ul #nav li { margin:0 }
#nav li:hover li ul { left:-999em }
#nav li li:hover ul {
left:114px;
top:0
}
#nav li.sub>a{
background-image: url(arrow.gif)!important;
background-repeat:no-repeat;
background-position:98% 50%;
}
You would probably be better off running through a good tutorial as there is a lot to take in.
Also you have many errors on that page and its a very small page so you need ot be careful and try and get it error free as a single error can break a whole page.
Hope that's a start anyway
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