Hello Martin, thanks for responding:
I am fully open to the possibility that I set up my transformation incorrectly.
I have several hierarchical transformations for menu items:
Primary Navigation
Sub Navigation
Site Map
They are all basically structured the same. The only place the "blank" code was being used was on specific levels separator transformation. I guess this is needed to break the hierarchy so that the list/sublists can repeat.
Level 0 Head - Text/XML
<ul>
Level 0 Item - ASCX
<li<%# IfCompare(CMS.CMSHelper.CMSContext.CurrentDocument.NodeAliasPath.StartsWith(Eval("NodeAliasPath").ToString()).ToString(), "True", "", " class='down'") %>><a href="<%# IfEmpty(Eval("DocumentMenuRedirectUrl"),GetDocumentUrl(),Eval("DocumentMenuRedirectUrl")) %>" <%# IfEmpty(Eval("DocumentMenuJavascript"),""," onclick=\""+Eval("DocumentMenuJavascript")+"\"") %>><%# IfEmpty(Eval("DocumentMenuCaption"),Eval("DocumentName"),Eval("DocumentMenuCaption")) %></a>
Level 0 Separator - Text/XML
</li>
Level 0 Current- ASCX
<li class="down"><a href="<%# IfEmpty(Eval("DocumentMenuRedirectUrl"),GetDocumentUrl(),Eval("DocumentMenuRedirectUrl")) %>" <%# IfEmpty(Eval("DocumentMenuJavascript"),""," onclick=\""+Eval("DocumentMenuJavascript")+"\"") %>><%# IfEmpty(Eval("DocumentMenuCaption"),Eval("DocumentName"),Eval("DocumentMenuCaption")) %></a>
Level 0 Foot - Text/XML
</li>
</ul>
Level 1 Head - Text/XML
<ul>
Level 1 Item - ASCX
<li><a href="<%# IfEmpty(Eval("DocumentMenuRedirectUrl"),GetDocumentUrl(),Eval("DocumentMenuRedirectUrl")) %>" <%# IfEmpty(Eval("DocumentMenuJavascript"),""," onclick=\""+Eval("DocumentMenuJavascript")+"\"") %>><%# IfEmpty(Eval("DocumentMenuCaption"),Eval("DocumentName"),Eval("DocumentMenuCaption")) %></a></li>
Level 1 Separator - Text/XML (This is where I had been using {%%})
Level 1 Current - ASCX
<li><a href="<%# IfEmpty(Eval("DocumentMenuRedirectUrl"),GetDocumentUrl(),Eval("DocumentMenuRedirectUrl")) %>" <%# IfEmpty(Eval("DocumentMenuJavascript"),""," onclick=\""+Eval("DocumentMenuJavascript")+"\"") %>><%# IfEmpty(Eval("DocumentMenuCaption"),Eval("DocumentName"),Eval("DocumentMenuCaption")) %></a></li>
Level 1 Foot - Text/XML
</ul>
This generates my main navigation with a drop down for 1st tier sub items. Does that info help?