New To WordPress- Help Q's

Hey Everyone,

I just started with wordpress.org (I’ve used wordpress.com for years) and I some questions/need some help. I am not an advanced HTML coder either… So, yah.

1. When I try to upload a picture, I get this error:
“Website Header.png” has failed to upload due to an error
Unable to create directory /www/zzl.org/b/r/i/brixxonline/htdocs/wp-content/uploads. Is its parent directory writable by the server?

What does this mean?

2. I want to make my pages “Drop-Down” What code should I use? Where do I put it? What does it mean?

3. This is Kinda what Im trying to achieve as a site. http://brixxonline.files.wordpress.com/2010/07/site.png?w=900
I got some of it with the template I chose (the fading sides, The image size etc.) brixxonline.zzl.org. Does anyone wanna help me make it? Will it be hard to get that result?

Thats pretty much all I need for now, Thanks!