Basic Superfish Display question

Basic Superfish Display question

I really want to start using Superfish for my menus but I’m perplexed by one thing. I'm looking at the sample menu that comes with the Superfish download...why does it look like this in design view? (see attached Superfish1.gif) I don’t know how to work with it like this in relation to the rest of the page elements (divs) in design view and I’ve never seen any other menus display this way. Why doesn't it display basically the same as in browser view (attached Superfish2.gif)?