Thanks, I was missing:
<asp:SiteMapDataSource ID="level3datasource" runat="server" ShowStartingNode="false" />
towards the top of the layout.master,
DynamicDisplayLevels="0"
in the first PageMenu control, and I was also missing
SiteMapDataSource="level3datasource"
Now I am running into a different problem. The PageMenu control is shown on the Register and Login pages. I checked this out using the andreasviklund-02 skin on the demo site and it does the same thing.
I added the LoginPageRelativeUrl setting in the user.config to point to a new Login page which shows the entire menu so it doesn't look silly with the PageMenu and not the SiteMenu. I haven't found a reference to a similar setting for the Register page so I modifed the Register page to hide the menu entirely. I don't like this solution as it is not viable after upgrades. I also prefer to not have a menu on these pages.
Is it feasible to hide all PageMenu controls on the Login and Register pages or maybe even allow administrators (through a web.config app setting) to decide if they want the SiteMenu and PageMenu controls to be displayed on the Login and Register pages?
Thanks again Joe!
-Joe D.