1) The navigation menu looks perfectly healthy and dropdown is working fine too. Pls clarify if you have some other issue with the navigation menu.
2) The image pointers can be controlled through CSS. In your case, you just need this Custom CSS in the Custom CSS tab of theme options panel –
#feature-pointers .wp-image-5001 {
top: 120px;
left: -20px;
}
More details on how to control the position of the images here –
https://www.livemeshthemes.com/support/forums/topic/slider-wont-slide/#post-2028
In you case, the class of the image changed and hence I had to use .wp-image-5001 as class name.