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jfmoore: I believe how "ul" is displayed (normally bullets) is left to the browser, unless, of course, browser settings are overridden with a style. It seems the style instructions in this particular template are mostly commented out, so you may have to look somewhere else. Somewhere in your theme, I would assume. You might try to comment out or delete the "font-size" line in the IE section, if only to see whether that does any good. But again, doesn't think this is the right place. Perhaps, you can try experimenting with different themes, and if you've found a nice one, see how the relevant class is defined in it ("blocks").
defwind: Once you add content, the drop down should get populated, and you can link new content to any of the pages you already have. Is that what you mean? I also think "Main Menu" here is not the XOOPS Main Menu, but the module's main menu, so to speak. In the XOOPS Main Menu, you will have "Content" (or something else if you have changed the module's name), taking you to the module start page you've defined, and then all your visible content as submenues to "content". If you want to have some menu structure outside of the XOOPS Main Menu, you would probably have to create a custom block (in blocks), or use one of the modules that let you costumize menues.