Menus are easy to create in WP version 3.x. As most of this process is better explained visually, we’ve prepared a WordPress tutorial video detailing the process.
Workarounds for Older Versions of WordPress
This tutorial assumes that your template supports the new WordPress menu system. We think editing your menu should be as easy as editing a webpage, but if your template doesn’t support the WP menu system, the process can be a bit more complicated. Follows are some ideas about workarounds in case you can’t switch your template. (This approach isn’t very recommended because it’s kind of like holding on to your VHS tapes when the whole world is switching to DVD. Sooner or later you will get left behind.)
The other option is to hack the code from a new template (like the default TwentyTen theme) and place it into your template files. If it’s over your head technically you can hire someone. Ahem.
Our hunch is that you’ll eventually have to upgrade your theme to work with the WP Menu system as it becomes more of a standard over time.