Lots of good changes. I agree that drop downs are a poor choice. However, I think a bigger problem is the use of bold for links.
From a useability perspective, stick with underlines! We've had a long time to get used to that convention on the web and you throw it away to try to make your pages prettier. At least use a different font colour to distinguish between links and real bold text. It's like trying to find the Pope in the pizza. Useability should be your #1 design goal and you really missed the boat here!