Wordpress Menus based on content (posts by categories or somehow pages)

Not sure if I am missing something very blatant or (much more doubtful) I am asking something that hasn't been asked very much (or in a very easily found place on google)...

I am outlining the process to put together a site with a bunch of information (in the form of posts or pages, shouldn't matter) organized into categories.

The categories are as such:

• Category: Policies Post/Pages under this category: Work Policy, Time off policy, desk policies, etc.

• Category: Forms Post/Pages under this category: Benefits Form, Medical Form, Purchase Order Form, etc.

• Benefits Post/Pages under this category: Medical, Dental, Optical, etc.

Is there an easy way to have WP create drop down menus as such:

Policies
-->Work Policy
-->Time off policy
-->Desk policies

Forms
-->Benefits Form
-->Medical Form
-->Purchase Order Form

etc.

Automatically without manually adding each? (also if any posts were added in the future they would automatically appear so long as they were categorized properly).

I am using a the simplex theme , which I have customized myself (http://wo开发者_C百科rdpress.org/extend/themes/simplex)

If I need an additional plugin , etc. that should not be a problem.

Thanks a lot! -M

Does that theme - or did you modify it - to use the WP3 menu system wp_nav_menu? http://codex.wordpress.org/Function_Reference/wp_nav_menu

The WP3 menu can be used to easily add category menu links: http://codex.wordpress.org/WordPress_Menu_User_Guide