The standard VirtueMart 2.x/3.x categories module has a major drawback; it only shows two levels of categories for your menu. This module overcomes this hurdle and will recursively show ALL of your VirtueMart 2.x/3.x categories in a menu.
You can also optionally display the category image or thumbnail in each category in the menu.
It uses the standard menu markup, using UL/LI lists so that you can use almost any dynamic menu scripts such as Suckerfish. Simply install and set up your menu to return to the great VirtueMart 1.1.x functionality.