I have a design that doesn't use tables and uses "position:relative;" and also elements that require "position:absolute; left:0; bottom:0;" this all works fine until i login as as admin and hover over the action menu (blue arrow) This menu is no longer displayed in the correct position - I believe the menu is now being positioned in relation to the "position:relative;" div and not the body/html tag 

Can anyone help?

I had the same sort of problem with the built-in menu (SolPart and the DNN Nav both were giving me this grief) and after a lot of tracing chalked it up to a bug (I actually found text somewhere stating that was the case).  What I ended up having to do to fix it was go with a different menu system altogether and, in my case and this instance, I used the Telerik AJAX RadControls skin objects in it's place since I had an enterprise subscription to them already.  Obviously that isn't an economical alternative in most instances, but the point is that there is a bug in the SolPart and DNN Nav menus that have this problem. 

The bug *could* be fixed in the next release which will be coming out with DNN 5, but I had no way of testing (nor did I want to wait) this.

This is good to hear.  I've played around with the beta for DNN.WebControls 2.0 and so far have been pretty impressed with the new features and functionality.  All I can say is "Go Jon!"