Whoops - there seems to be some code being omitted :-(
Again:
Navigate to (your DNN installation path)/Portals/(your Portal Id)/DMX/Menu and open the file DefaultMenu.resources.
In this file replace all occurencies of (xsl:with-param name="includeCutCopy")true to (xsl:with-param name="includeCutCopy")false
Then save the file as "SmallMenu.resources"... and read on in my first post :-)
And of course, please replace any bracket to its corresponding > or <.
-Chris