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Three styles/types of menus are currently possible: horizontal, menus drop down; vertical, menus fly to the left; vertical, menus fly to the right. There is a handbook page that provides a list of sites that use Nice menus.
Nice Menus creates blocks that may be associated with any existing site menu which can be placed wherever normal blocks can be placed in a theme. For themers, it is also possible to theme a menu as a Nice Menu directly by using the provided theme functions so a block is not necessary. A specific theme function for the Primary Links menu is available. The theme functions also allow a developer to pass in a custom menu tree of their making (i.e. not using a Drupal menu.) There is more information on how to use theme functions in the documentation.
The module comes with a simple, generic color scheme which can be fully overridden either by adding the override CSS to the theme's normal stylesheet or by creating a Nice Menus CSS file and telling Nice Menus to use that rather than its own default one through the global theme configuration. Several CSS override examples are provided in the included README.txt file and in the handbook.
Note: Nice menus will give you easy to use, plug and play blocks with flyout menus but does require CSS work to get customized styling. If you have CSS styling questions, please ask on the forums, #drupal-themes IRC or the Themes mailing list because I do not have the time to answer all of the CSS troubleshooting support questions in the issue queue and you will get more eyes on a generic CSS problem in other support channels. If you want to help troubleshoot CSS problems, there is a whole category in the issue queue just for CSS support.
The 6.x-2.x version has many new features and some rewriting. Note that V2 is BETA, and has some known bugs. Please test and report bugs so we can get it up to a stable release. Once V2 is stable, a port to D7 will follow.
NOTE: You MUST read the UPGRADE.txt if upgrading from previous versions. Notably, the theme function names have changed so if you are using them in your theme templates you will need to update the function name when you upgrade. There are also several important CSS changes as well which could effect your custom CSS.
New features in 6.x-2.x:
#135771: Choose starting and ending menu depth
#219804: Set active menu trail CSS selectors
#322962: Add configurable JS with Superfish
#300628: Support menu translation (i18n)
#301247: add classes 'first', 'last', 'even', 'odd'
Last updated June 19, 2010.