You have chopped out a ton of the css, hence the blueness.
Put this css in below, and the ‘a’ setting covers colours / behaviours:
#menu {
background: #fff;
border-left: 1px dotted #ccc;
border-top: solid 3px #e0e6e0;
padding: 20px 0 10px 30px;
position: absolute;
right: 2px;
top: 0;
width: 11em;
}
#menu form {
margin: 0 0 0 13px;
}
#menu input#s {
width: 80%;
background: #eee;
border: 1px solid #999;
color: #000;
}
#menu ul {
color: #ccc;
font-weight: bold;
list-style-type: none;
margin: 0;
padding-left: 3px;
text-transform: lowercase;
}
#menu ul li {
font: italic normal 110% 'Times New Roman', Times, serif;
letter-spacing: 0.1em;
margin-top: 10px;
padding-bottom: 2px; /*border-bottom: dotted 1px #ccc;*/
}
#menu ul ul {
font-variant: normal;
font-weight: normal;
line-height: 100%;
list-style-type: none;
margin: 0;
padding: 0;
text-align: left;
}
#menu ul ul li {
border: 0;
font: normal normal 70%/115% 'Lucida Grande', 'Lucida Sans Unicode', Verdana, sans-serif;
letter-spacing: 0;
margin-top: 0;
padding: 0;
padding-left: 12px;
}
#menu ul ul li a {
color: #000;
text-decoration: none;
}
#menu ul ul li a:hover {
border-bottom: 1px solid #809080;
}
#menu ul ul ul.children {
font-size: 142%;
padding-left: 4px;
}