Marcink99,
Why do you think a drop down menu is diluting the authority passed within your site? If it is because of the format, Googlebot and other user agents used to crawl web pages actually strip away any styling like that. They don't see the site the same way that a person does. In the eyes of a bot, a link is a link and it will crawl it.
The only thing that would hurt your internal link structure is if you had your links built in a different way such as with Javascript (which Google does not recommend).
This free tool allows you to see your website as Googlebot does,
http://www.smart-it-consulting.com/internet/google/googlebot-spoofer/
Here is an informative post on link sculpting from Matt Cutts,
http://www.mattcutts.com/blog/pagerank-sculpting/
It really shouldn't make a difference if you have drop down menus or just a link in the text of a page.
Hope that clears any confusion up for you,
Shawn