How to enable sub menu on the global menu?

Question

We recently signed up for Office 365 and are in the process of building out oure SharePoint site.

We started with the default site, a Team Site and have built out the following site map:

• Site
  • Sub Site 1
  • Sub Site 2
    • Sub Site 3
    • Sub Site 4
  • Sub Site 5

The main navigation appears as:

Sub Site 1 | Sub Site 2 | Sub Site 5

We would like a drop down menu to appear when the user hovers over Sub Site 2, showing the Sites under that Site.

It looks like SharePoint 2010 supports this, for the life of me I can't seem to get the settings right to make this work.

Any help would be appreciated!

Per the recommendation below ... I located the following:

<SharePoint:AspMenu
      ID="TopNavigationMenuV4"
      Runat="server"
      EnableViewState="false"
      DataSourceID="topSiteMap"
      AccessKey="<%$Resources:wss,navigation_accesskey%>"
      UseSimpleRendering="true"
      UseSeparateCss="false"
      Orientation="Horizontal"
      StaticDisplayLevels="2"
      MaximumDynamicDisplayLevels="1"
      SkipLinkText=""
      CssClass="s4-tn"/>

It looks correct ... but menus still not displaying.

So I made those changes in the master page ... and then I checked the box below:

I do get a drop down menu, but now it seems my links are duplicated:

Answer 1

Find the SharePoint:AspMenu control with the ID TopNavigationMenu in the masterpage and set these values

StaticDisplayLevels="X"
MaximumDynamicDisplayLevels="X"