Yes, I have had problems with the Action menus for awhile now too. The flyout menus would open right overtop the initial menu so if the flyout menu was larger, you could not select anything. Now they are doing something similar
to your picture where they flyout by doubling the size of the menu which is better but not optimal.
I have tried to track this down as a browser issue but I could not find it. It seemed to do the same thing on IE7 or IE8 and on any machine at the company. I also look at the server but dont really know what to look at since I think
it's just jscript code controlling the menu and maybe some CSS.
Sorry I dont have better news, but you are not alone at least ;)
Steve