Atahualpa Nav Menu problems in admin area…(sticking)?

I am using Atahualpa 3.6.4 on wordpress 3.1. Using Host Gator. Windows 7. Only been using wordpress for 2 months. Have been using Atahualpa theme for about that time as well. The problem I am having is when I am adding pages to the nav menu on the dashboard, the rectangular boxes won’t line up to the menu I want it to show up in correctly. It would line up at the beginning. But as I added more and more pages to the custom menu, it became harder and harder to get them to line up in the correct spot with the dashed boxes. The menu would be like ‘State Laws’ >> ‘Washington’ >> ‘Example Law’. Not able to be a 3rd level menu. Hope that makes sense. Thanks.