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horizontal submenu disappears on IE
Using version 3.2.0-rc of phplayersmenu, and Microsoft
Internet Exploder version 6.0.2800, the sub-menus of
horizontal menus disappear immediately on mouseover,
apparently only at smaller window dimensions, only after
the page is fully loaded.

This is from the bug-report og phplayersmenu.

I have the same Problem with IE 6.0.29

It matters where u put the {cms_module module='phplayers' horizontal='1'} in your template. I've had some headaches working on that too, but finally got it working.
Check here (it's working on Mozilla,IE and it's valid).

http://darbai.eik.lt

Test with fresh installed cms , Homepage used with the Alternate - Template.