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russtik:
You can't just copy the code from a block and expect it to work outside of a block. Simply stated, that is because XOOPS doesn't know the meaning of the Smarty tags placed in the HTML file. The solution would be to add the menu PHP code to the footer (in an unobstrusive place) and to make the necessary Smarty variable assignments. Of course, it gets a little difficult to keep the dynamic attributes of the main menu, but with persistence, I'm sure you can do it.
Cheers.