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Question: Does it really enhance the user experience significantly on a large site to know precisely what page they are on by visual cues in the navigation menu's?
I've never had any complaints on my navigation systems, but when visiting other websites, I often appreciate the little "breadcrumb" Home > Section > Subsection > Page style navigation links... I think (tho I'm not sure) that I've seen scripts that will automatically create breadcrumb links for you, with SSI of course. It's a good idea for really huge sites, but not necessary, IMO.
Much more important, I find, are page headings that correspond exactly with the link names that people click on to arrive at the page. It's surprising how many sites don't pay attention to this, and it creates confusion for techie and newbie alike.
Another problem I sometimes have creating breadcrumb trails on some sites -- the actual directory structure does not correspond to the graphically presented site structure that the user sees.
For instance, a vistor may have the sense that they have drilled down to:
level_1 > level_2 > level_3 > level_4 > level_5
But if the folder structure were really that deep (using full keywords for directory names) then the URL would be too many characters long for some spiders. So the actual URL I use for "level_5" might just be domain.com/level_5