Joanne,
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Under Toolbar Options, clear the Allow Full Menus and Allow Built-in Toolbars check boxes
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I was not turning off "Allow Built-in Toolbars" also. That made it work for me.
Now my 2003 MDE front end runs with a similar look and menu style like it did in 2003.
You stated:
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... it gets rid of the existing menu with Database Tools, which is still needed.
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Do you use this for development or do the end user use these options?
I would think you only need these options for development and not for the end users.
I have ever database split. Before I deploy the new front end as an MDE, I open the copy that is ready to be deployed and lock it down.
The development "master" copy still has all the menus, etc. turned on.
If your database is not split:
While developing you could turn on the
Allow Full Menus and
Allow Built-in Toolbars options. When done you would turn them off the options before letting the users back in.
If the end user do use these options you could add them to your own custom menu bar.