I noticed something strange today. When working locally on a nightly.
zenphoto version 1.2.5 [4250]
When in album view everything seems normal in the menu "see Screen shot"
http://img.skitch.com/20090725-gxk132hsqjnnhwr5qxqgjf5pft.png
However when an image has been selected the folder tree collapses "see screen shot"
http://img.skitch.com/20090725-r2g8c9yf2rnbgtjen3xx4wywum.png
This I have not seen before.
I checked on my online one I am working to upgrade and everything is fine there
Using zenphoto version 1.2.3 [3617] | zenpage version 1.1 [3617]
I just noticed something else after I updated with new files... Menu in ZenPage does not close when SubMenu is selected. As all the other subMenu items stay open.
Be sure you replaced all files with the new ones. Also check if you set the parameters of the menu function correctly. I could not reproduce this behaviour with the zenpage-default theme. See yourself: zenpage-demo.maltem.de (that is still 1.2.5 [4253])