List page menu with children and grandchildren

Okay so it’s been over a year since I made a WordPress theme and now I’ve started again but I’ve run into a problem with my menu on pages.

This is my current page hierarchy (I’m still only testing hence the names)

EDIT: Multi level UL->LI didn’t work so well here so I’ll just show you with * meaning child and **meaning grandchild

Home

This page
	*Child 1
		**Grandchild 1
		**Grandchild 2
	*Child 2
		**Grandchild 3
		**Grandchild 4
		**Grandchild 5
	*Child 3
		**Grandchild 6

Another page

Now when I visit “This page” I want to show a link to “This page” (current) and all the direct childs (no grandchildren here) of “This page” like in this sketch: http://img840.imageshack.us/img840/3006/thispage.png

Now when i visit a “Child 1” of “This page” I want to show everything from above menu and all childs of “Child 1” (Grandchild 1 & 2) in a sub ul under “Child 1” like in this sketch: http://img4.imageshack.us/img4/7868/child1.png

And now when I visit “Grandchild 1” I want to show the same menu as I did for “Child 1” only with “Grandchild 1” as current item instead like in this sketch: http://img819.imageshack.us/img819/1633/grandchild1.png

This is my current code based on the example in the codex for a slightly other type of menu but it isn’t working very well and absolutely not well for the godchildren.

<?php
if($post->post_parent){
	$children = wp_list_pages("title_li=&include=".$post->post_parent."&echo=0");
	$children .= wp_list_pages("title_li=&child_of=".$post->post_parent."&echo=0");
}
else{
	$children = wp_list_pages("title_li=&child_of=".$post->ID."&echo=0");
} 	

if ($children) { ?>
	<div class="page-menu">
	<ul>
	<?php echo $children; ?>
	</ul>
	</div>
<?php } ?>

My plan is to have the menu as a sidebar on my page as you can see in the sketches.