The code in this page shows you various ways you can use to include icons in menu items. Again, remember, since our menu is defined as plain HTML code, then you'd need no extra JS knowledge in order to include an icon—you just need to know how to use the IMG tag, which you do, right? ;-)
So, if you look through the page source, the golden rule to follow is simple: just include an <IMG> tag that displays the icon, as you would in ordinary HTML. For horizontal menu items (top-level) put this link into the <A> tag. For the vertical menus items, make sure the <IMG> tag is outside the link—we are using this in order to provide proper alignment of menu icons.
You can safely include PNG icons with variable transparency, as long as you also put this line at the end of your document, before the end of the <body> tag:
<script type="text/javascript" src="/path/to/hmenu/src/PieNG.js"></script>
So, the idea is to have this script loaded as the last thing in page; it will take care of patching all IMG tags to work properly with Internet Explorer 5.5 or later (no need for such patches for browsers such as Mozilla, Opera, Safari, Konqueror, and maybe others, as they can display PNG-s correctly out-of-the-box; as usual, from all lot, only IE needs special treatment).