CSS hover over wide - css

Question

Current my mouse pointer if there is point out of the red colour box it still doing the hover function, but what i need is i only need the hover in red colour box, it out of the box it will hide the menu.
This is the my source from JSfiddle http://jsfiddle.net/KECN7/
This is my html source code
<ul id="menu">
<li>
<ul>
<li>Logout</li>
<li>Account Settings</li>
<li>Terms & Policies</li>
</ul>
</li>
</ul>
this is css source code
#menu{
/*width: 50%;*/
margin: 0;
padding: 10px 0 0 0;
list-style: none;
position: absolute;
}
#menu li{
float: left;
padding: 0 0 10px 0;
position: relative;
}
#menu a{
float: left;
height: 25px;
padding: 0 25px;
color: #999;
text-transform: uppercase;
font: bold 12px/25px Arial, Helvetica;
text-decoration: none;
text-shadow: 0 1px 0 #000;
}
#menu li:hover > a{
color: #fafafa;
}
*html #menu li a:hover{ /* IE6 */
color: #fafafa;
}
#menu li:hover > ul{
display: block;
z-index: 99;
}
/* Sub-menu */
#menu ul{
list-style: none;
margin: 10px 0 25px 0;
/*width: 50px;*/
padding: 0;
display: none;
position: absolute;
top: 20px;
right: 10px;
z-index: 99999;
background: #444;
background: -moz-linear-gradient(#444, #111);
background: -webkit-gradient(linear,left bottom,left top,color-stop(0, #111),color-stop(1, #444));
background: -webkit-linear-gradient(#444, #111);
background: -o-linear-gradient(#444, #111);
background: -ms-linear-gradient(#444, #111);
background: linear-gradient(#444, #111);
-moz-border-radius: 5px;
border-radius: 5px;
}
#menu ul li{
float: none;
margin: 0;
padding: 0;
display: block;
-moz-box-shadow: 0 1px 0 #111111, 0 2px 0 #777777;
-webkit-box-shadow: 0 1px 0 #111111, 0 2px 0 #777777;
box-shadow: 0 1px 0 #111111, 0 2px 0 #777777;
}
#menu ul li:last-child{
-moz-box-shadow: none;
-webkit-box-shadow: none;
box-shadow: none;
}
#menu ul a{
padding: 15px;
height: auto;
line-height: 1;
display: block;
white-space: nowrap;
float: none;
text-transform: none;
}
*html #menu ul a{ /* IE6 */
height: 10px;
width: 150px;
}
*:first-child+html #menu ul a{ /* IE7 */
height: 10px;
width: 150px;
}
#menu ul a:hover{
background: #0186ba;
background: -moz-linear-gradient(#04acec, #0186ba);
background: -webkit-gradient(linear, left top, left bottom, from(#04acec), to(#0186ba));
background: -webkit-linear-gradient(#04acec, #0186ba);
background: -o-linear-gradient(#04acec, #0186ba);
background: -ms-linear-gradient(#04acec, #0186ba);
background: linear-gradient(#04acec, #0186ba);
}
#menu ul li:first-child a{
-moz-border-radius: 5px 5px 0 0;
-webkit-border-radius: 5px 5px 0 0;
border-radius: 5px 5px 0 0;
}
#menu ul li:first-child a:after{
content: '';
position: absolute;
left: 100px;
top: -8px;
width: 0;
height: 0;
border-left: 5px solid transparent;
border-right: 5px solid transparent;
border-bottom: 8px solid #444;
}
#menu ul li:first-child a:hover:after{
border-bottom-color: #04acec;
}
#menu ul li:last-child a{
-moz-border-radius: 0 0 5px 5px;
-webkit-border-radius: 0 0 5px 5px;
border-radius: 0 0 5px 5px;
}
/* Clear floated elements */
#menu:after{
visibility: hidden;
display: block;
font-size: 0;
content: " ";
clear: both;
height: 0;
}
a.btn-function {
background-image: url(../ovolo/img/btn_function.png);
background-color: red;
background-size: 27px;
background-repeat: no-repeat;
display: block;
position: relative;
margin: 0px 5px 0 90px;
float: left;
}

Answer 1

The problem is you are applying the red box to the a element, but taking action on the (larger) li parent element.
You can change your selector to (Fiddle):
#menu li a:hover + ul, #menu li a + ul:hover{
display: block;
z-index: 99;
}
This is not a perfect fix because of the dead space between the a and the ul though, the best option would be to make the a take up the entire space of the li.