I found the problem lies with the "height". If the height of the <div>
or <ul> is set to a specific value e.g. 200px. The menu will collapse
in animated fashion if it is set to auto. Here is the test code.

<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.1//EN" "http://www.w3.org/
TR/xhtml11/DTD/xhtml11.dtd">
<html>
<head>
  <link rel="stylesheet" href="Work_files/jquery.treeview.css"
type="text/css" media="screen" />
<SCRIPT type=text/javascript src="Work_files/jquery-1.3.2.min.js"></
SCRIPT>

<SCRIPT type=text/javascript src="Work_files/jquery.treeview.min.js"></
SCRIPT>

  <style type="text/css">
  #browser {
    font-family: Verdana, helvetica, arial, sans-serif;
    font-size: 68.75%;
  }

  #tree
  {
    height:200px; /* <-- set to auto and the menu will not collapse
abruptly */
  }
  </style>
  <script>
  $(document).ready(function(){
    $("#tree").treeview({
   animated:'slow',unique: true
})
  });
  </script>

</head>
<body>
  <ul class="treeview" id="tree">
    <li ><span><strong>Home</strong></span>
      <ul style="display: none;">
        <li>Item X</li>
        <li><span>header</span>
            <ul>
                <li><a href="?y">Item Y</a> </li>
            </ul>
        </li>
        <li class="last"><a href="?z">Item Z</a></li>
      </ul>
    </li>
    <li ><span><strong>News</strong></span>
      <ul style="display: none;">
        <li><a href="?x">Item X</a></li>
        <li><a href="?y">Item Y</a> </li>
        <li class="last"><a href="?z">Item Z</a></li>
      </ul>
    </li>
  </ul>
</body>
</html>

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