Z-index onjuist

<div id="menu">
  <ul id="navigation">
    <li class="home"><a href=""><span>Home</span></a></li>
    <li class="about"><a href=""><span>About</span></a></li>
    <li class="search"><a href=""><span>Search</span></a></li>
    <li class="photos"><a href=""><span>Photos</span></a></li>
    <li class="rssfeed"><a href=""><span>Rss Feed</span></a></li>
    <li class="podcasts"><a href=""><span>Podcasts</span></a></li>
    <li class="contact"><a href=""><span>Contact</span></a></li>
  </ul>
</div>

#menu {
	background-image:url(img/menu_bg.png);
	width:464px;
	height:250px;
	z-index:3;
	margin-top:206px;
	position:relative;
}

ul#navigation {
	margin: 0px;
	padding: 0px;
	list-style: none;
	z-index:2;
	width:100px;
	position:absolute;
}