I am trying to implement a drop down menu on my site.

Currently, when a user is not logged in, it shows an inline set of input fields with a submit button. When the user logs in, the fields are replaced by Welcome (username) [logout].

Where their username is, I would like to make their name part of a drop down menu, so when they hover over their name, options drop down that they can click.

I have the dd menu working, but I am running into an issue: I cannot get "Welcome (username) [logout] to line up on one line. Rather, it shows as such:

Welcome
(username)
[logout]

I am assuming that this is caused by the <ul> <li>'s, and I have tried to set display:inline for the main DD, to no avail.

Here is the relevant CSS:

Code:
#login {
	position:absolute; 
	right:25px; 
	top:10px;
	}
	
#login fieldset {
    font-size: 1em;
    padding: 0.5em;
    font-family: sans-serif;
    border-width: 0;
}
#login label {
	float:left; 
	display:inline, block;
	margin: 0.4em 0.2em;
	}
	
#password-clear {
	display: none;
	}
	
#navbar {
	display:inline;
	margin: 0;
	padding: 0;
	height: 1em; 
	color:#000;
	}
	
#navbar li {
	z-index:1;
	list-style: none;
	color:#000;
	}
	
#navbar li a {
	display: block;
	padding: 3px 8px;
	text-decoration: none; 
	}
	
#navbar li ul {
	display: none; 
	width: 10em; /* Width to help Opera out */
	background-color: #69f;}
#navbar li:hover ul {
	z-index:1;
	display: block;
	position: absolute;
	margin: 0;
	padding: 0; }
#navbar li:hover li {
	float: none; }
#navbar li:hover li a {
	background-color: #69f;
	border-bottom: 1px solid #fff;
	color: #000; }
#navbar li li a:hover {
	background-color: #8db3ff; }
And here is my html:

Code:
  <div id="header" role="banner">
   <img src="images/header_logo.gif">
    <?php
    IF (!ISSET($_SESSION['loggedIn']))
    {
    ?>
    <form id="login" method="post" action="login.php?action=logIn">
     <div>
      <label>
      <a href="login.php?action=register">Register</a> or Login:&nbsp; 
      </label>
      <input type="text" id="username-clear" value="Username" size="10">
      <input type="text" name="username" id="username-username" value="" size="10"> 
      <input id="password-clear" type="text" value="Password" autocomplete="off" size="10">
      <input id="password-password" type="password" name="password" value="" size="10" autocomplete="off" />
       <input type="submit" value="Login">
       <?php 
	IF (ISSET($_GET['error'])){echo '<br /><div style="color:#FF0000;">Incorrect Username Or Password</div>';}
       ?>
     </form>
    </div>
    <?php
    }ELSE{
    ?>
     <form id="login" method="post" action="login.php?action=logOut">
    <div>Welcome 
     <ul id="navbar">
	<li><a href="#"><?php echo $_SESSION['username'];?></a>
        <ul>
		<li><a href="#">Subitem One</a></li>
		<li><a href="#">Second Subitem</a></li>
		<li><a href="#">Numero Tres</a></li></ul>
	</li>
        </ul>
        <input type="submit" value="Log Out"></form></div>
        <?php
        }
        ?>
        </div>
So in plain english: How do I get WELCOME - USERNAME - LOGOUT all on the same line when USERNAME is a <ul> drop down menu?

Thanks!