wp_list_categories 2011???

Hi, one of my old themes is using a really messy subnavigation with lots of duplicated files like header-main.php and unsing code like:

<?php wp_list_categories('order=desc&title_li=0&child_of=16&depth=1'); ?>

What would be the easiest way to have such a subnavigation in WP 3.2.1 today?
https://img24.imageshack.us/img24/9459/subnavigation.png

Thanks in advance:)