diff --git a/xdoc/src/plugin-resources/css/maven-base.css b/xdoc/src/plugin-resources/css/maven-base.css
index 56e81525..7e4f9971 100644
--- a/xdoc/src/plugin-resources/css/maven-base.css
+++ b/xdoc/src/plugin-resources/css/maven-base.css
@@ -68,12 +68,13 @@ div.clear hr{
 #navcolumn h5, #navcolumn ul {
   margin: 0;
   padding: 0;
+  font-size: small;
 }
 #navcolumn li {
   list-style-type: none;
   background-image: none;
   background-repeat: no-repeat;
-  background-position: 0.4em;
+  background-position: 0 0.4em;
   padding-left: 16px;
   list-style-position: ouside;
   line-height: 1.2em;
diff --git a/xdoc/src/plugin-resources/site.jsl b/xdoc/src/plugin-resources/site.jsl
index 5a5055f9..1ff3f2a3 100644
--- a/xdoc/src/plugin-resources/site.jsl
+++ b/xdoc/src/plugin-resources/site.jsl
@@ -249,10 +249,12 @@
       <j:if test="${!navbean.isSelected(item.get(0))}">
         <doc:itemLink name="${_name}" link="${_link}" img="${_img}" state="${_state}"/>
       </j:if>
+      <j:if test="${!navbean.isCollapsed(item.get(0))}">
+        <ul>
+          <jsl:applyTemplates select="item"/>
+        </ul>
+      </j:if>
     </li>
-	  <j:if test="${!navbean.isCollapsed(item.get(0))}">
-      <jsl:applyTemplates select="item"/>
-    </j:if>
   </jsl:template>
 
   <!-- Process the breadcrumb navbar -->
diff --git a/xdoc/xdocs/changes.xml b/xdoc/xdocs/changes.xml
index 6e98655f..f59e64fd 100644
--- a/xdoc/xdocs/changes.xml
+++ b/xdoc/xdocs/changes.xml
@@ -25,6 +25,7 @@
   </properties>
   <body>
     <release version="1.7-SNAPSHOT" date="in CVS">
+      <action dev="brett" type="fix" due-to="Chad McHenry" issue="MPXDOC-78">indent nested menus in navigation</action>
       <action dev="brett" type="fix">remove changes-report.xml which was generating over the top of the actual report. This information already exists in the changes plugin documentation.</action>
       <action dev="brett" type="fix" issue="MPXDOC-82">fix processing of a href links</action>
       <action dev="brett" type="fix" issue="MPXDOC-84">fix URI problems</action>
