rocknbil - 5:15 pm on Dec 19, 2011 (gmt 0)
First, give this a stab:
$('.menu ul li ul').css('display','none');
... but I fear that may have the same effect. from the docs: [api.jquery.com]
This event type can cause many headaches due to event bubbling. For instance, when the mouse pointer moves out of the Inner element in this example, a mouseout event will be sent to that, then trickle up to Outer. This can trigger the bound mouseout handler at inopportune times. See the discussion for .mouseleave() [api.jquery.com] for a useful alternative.
Did you give mousleave() a try?