I'm using the RC and there is an option that when you hover over a submenu it is supposed to open it automatically. On my version it doesn't work correctly since it only opens items directly on the start menu, not the items under all programs. For example on the screenshot on the first post, when the option is disabled I have click on click on all programs to open it, and any of the menu items on the right side (fullmetal, documents etc). When I turn on the option those items are opened automatically when I hover over them, but it doesn't open any of the folders under the all programs menu. Vista has an option for classic start menu, but from what I can tell in windows 7 there is no way to set the all programs menu to expand folders to the right like a menu, only down. If someone is using one of the newer builds they can check to see if pausing over the program folders expands it.
Edit:
Went back to my vista install and it also does the same thing as windows 7. I turned on the classic menu to see how it looks, but it makes your start menu windows 98 style.