In the IE7 Beta 2 Preview the UI element that hosts menus and 3rd party toolbars is located between the navigation bar and tabs. However, in this release there's a registry key which you can set to move this to the top of the window instead:
[HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Toolbar\WebBrowser] "ITBar7Position"=dword:00000001
You can also turn off the menu auto-hide functionality by checking Tools -> Toolbars -> Classic Menus from the Command Bar.
Disclaimer: This is not an official feature at this time and may not be available in the future.
One minor request: If you think you want to use this key please try it both ways with your toolbars and menus configured how you like them, especially if you use the Links bar and 3rd party toolbars. Also, yes I'm very aware that some people who previously did heavy toolbar customization in IE6 have concerns about the customizability of IE7. I hope this will help a bit, but if you just came here to flame please make it constructive. That will maximize your chances of getting heard. Ok, that's two requests. 🙂