In Master Page Replace everything in <asp:ContentPlaceHolder id="PlaceHolderLeftNavBar" runat="server"> with
<ASP:TreeView ID="CurrentNav" runat="server" datasourceID="SiteMapDS"
AccessKey="3" CssClass="leftNav" ExpandDepth="1"
SkipLinkText="<%$Resources:cms,masterpages_skiplinktext%>">
</ASP:TreeView>
<PublishingNavigation:PortalSiteMapDataSource ID="SiteMapDS" Runat="server"
SiteMapProvider="CurrentNavSiteMapProviderNoEncode" EnableViewState="true"
StartFromCurrentNode="true" StartingNodeOffset="0" ShowStartingNode="false"
TrimNonCurrentTypes="Heading"/>
We striped out some of the item level tags and chaged from a sharepoint:aspMenu to a ASP:Treeview. Then we need to tweak the web.config. Add 'RequireUniqueKeysForNodes="true"' to CurrentNavSiteMapProviderNoEncode to make it look like this.
<add name="CurrentNavSiteMapProviderNoEncode"
description="CMS provider for Current navigation, no encoding of output"
type="Microsoft.SharePoint.Publishing.Navigation.PortalSiteMapProvider, Microsoft.SharePoint.Publishing, Version=12.0.0.0, Culture=neutral,PublicKeyToken=71e9bce111e9429c"
NavigationType="Current" EncodeOutput="false" RequireUniqueKeysForNodes="true" />
reset ISS and roll