diff -Naur mantisbt-1.2.3/config_defaults_inc.php mantisbt-patch/config_defaults_inc.php
--- mantisbt-1.2.3/config_defaults_inc.php	2010-09-22 10:39:51.000000000 +0200
+++ mantisbt-patch/config_defaults_inc.php	2010-09-22 10:49:00.000000000 +0200
@@ -777,6 +777,14 @@
 	$g_show_project_menu_bar = OFF;
 
 	/**
+	 * Show available projects in a condensed mode: only current project,
+	 * its parents and children are displayed in the project menu bar;
+	 * projects are displayed only once in project dropdown.	 
+	 * @global int $g_show_projects_condensed
+	 */
+	$g_show_projects_condensed = OFF;
+
+	/**
 	 * show assigned to names
 	 * This is in the view all pages
 	 * @global int $g_show_assigned_names
diff -Naur mantisbt-1.2.3/core/html_api.php mantisbt-patch/core/html_api.php
--- mantisbt-1.2.3/core/html_api.php	2010-09-22 10:40:42.000000000 +0200
+++ mantisbt-patch/core/html_api.php	2010-09-22 11:30:16.000000000 +0200
@@ -865,9 +865,33 @@
 	echo '<td class="menu">';
 	echo '<a href="' . helper_mantis_url( 'set_project.php?project_id=' . ALL_PROJECTS ) . '">' . lang_get( 'all_projects' ) . '</a>';
 
-	foreach( $t_project_ids as $t_id ) {
-		echo ' | <a href="' . helper_mantis_url( 'set_project.php?project_id=' . $t_id ) . '">' . string_html_specialchars( project_get_field( $t_id, 'name' ) ) . '</a>';
-		print_subproject_menu_bar( $t_id, $t_id . ';' );
+	if( config_get( 'show_projects_condensed' ) == OFF ) {
+		foreach( $t_project_ids as $t_id ) {
+			echo ' | <a href="' . helper_mantis_url( 'set_project.php?project_id=' . $t_id ) . '">' . string_html_specialchars( project_get_field( $t_id, 'name' ) ) . '</a>';
+			print_subproject_menu_bar( $t_id, $t_id . ';' );
+		}
+	} else {
+		# Show only a condensed version of the menu bar
+		$t_project_path = helper_get_current_project_trace();
+		$t_parents = '';
+		if( $t_project_path[0] == ALL_PROJECTS ) array_shift( $t_project_path );
+
+		while( count( $t_project_path ) > 0 && in_array( $t_project_path[0], $t_project_ids ) ) {
+			$t_parents = $t_parents . $t_project_path[0];
+			echo ' &gt; <a href="' . helper_mantis_url( 'set_project.php?project_id=' . $t_parents ) . '">' . string_html_specialchars( project_get_field( $t_project_path[0], 'name' ) ) . '</a>';
+			$t_parents .= ';';
+			$t_project_ids = current_user_get_accessible_subprojects( $t_project_path[0] );
+			array_shift( $t_project_path );
+		}
+
+		if( count( $t_project_path ) > 0 ) {
+			$t_parents = $t_parents . $t_project_path[ count( $t_project_path ) - 1 ];
+			echo ' &gt;&gt; <a href="' . helper_mantis_url( 'set_project.php?project_id=' . $t_parents ) . '">' . string_html_specialchars( project_get_field( $t_project_path[ count( $t_project_path ) - 1 ], 'name' ) ) . '</a>';
+			$t_parents .= ';';
+			$t_project_ids = current_user_get_accessible_subprojects( $t_project_path[ count( $t_project_path ) - 1 ] );
+		}
+
+		print_subproject_menu_bar( $t_project_ids, $t_parents );
 	}
 
 	echo '</td>';
@@ -880,11 +904,19 @@
  * @return null
  */
 function print_subproject_menu_bar( $p_project_id, $p_parents = '' ) {
-	$t_subprojects = current_user_get_accessible_subprojects( $p_project_id );
+	$t_recursive = false;
+	$t_subprojects = $p_project_id;
+	if( !is_array( $p_project_id ) ) {
+		$t_recursive = true;
+		$t_subprojects = current_user_get_accessible_subprojects( $p_project_id );
+	}
+
 	$t_char = ':';
 	foreach( $t_subprojects as $t_subproject ) {
 		echo $t_char . ' <a href="' . helper_mantis_url( 'set_project.php?project_id=' . $p_parents . $t_subproject ) . '">' . string_html_specialchars( project_get_field( $t_subproject, 'name' ) ) . '</a>';
-		print_subproject_menu_bar( $t_subproject, $p_parents . $t_subproject . ';' );
+		if( $t_recursive ) {
+			print_subproject_menu_bar( $t_subproject, $p_parents . $t_subproject . ';' );
+		}
 		$t_char = ',';
 	}
 }
diff -Naur mantisbt-1.2.3/core/print_api.php mantisbt-patch/core/print_api.php
--- mantisbt-1.2.3/core/print_api.php	2010-09-22 10:41:12.000000000 +0200
+++ mantisbt-patch/core/print_api.php	2010-09-22 13:56:34.000000000 +0200
@@ -462,7 +462,9 @@
  * @return void
  */
 function print_project_option_list( $p_project_id = null, $p_include_all_projects = true, $p_filter_project_id = null, $p_trace = false ) {
-	$t_project_ids = current_user_get_accessible_projects();
+	$t_condensed = ( config_get( 'show_projects_condensed' ) != OFF );
+	$t_project_ids = $t_condensed ? current_user_get_all_accessible_subprojects( ALL_PROJECTS ) :
+		current_user_get_accessible_projects();
 	project_cache_array_rows( $t_project_ids );
 
 	if( $p_include_all_projects ) {
@@ -471,14 +473,24 @@
 		echo '>' . lang_get( 'all_projects' ) . '</option>' . "\n";
 	}
 
-	$t_project_count = count( $t_project_ids );
-	for( $i = 0;$i < $t_project_count;$i++ ) {
-		$t_id = $t_project_ids[$i];
+	$t_projects = array();
+	foreach( $t_project_ids as $t_id ) {
+		$t_projects[$t_id] = project_get_field( $t_id, 'name' );
+	}
+	asort( $t_projects );
+	if( $t_condensed ) {
+		$t_selected_id = split( ';', $p_project_id );
+		$p_project_id = $t_selected_id[ count( $t_selected_id ) - 1 ];
+	}
+
+	foreach( $t_projects as $t_id => $t_name ) {
 		if( $t_id != $p_filter_project_id ) {
 			echo '<option value="' . $t_id . '"';
 			check_selected( $p_project_id, $t_id );
-			echo '>' . string_attribute( project_get_field( $t_id, 'name' ) ) . '</option>' . "\n";
-			print_subproject_option_list( $t_id, $p_project_id, $p_filter_project_id, $p_trace, Array() );
+			echo '>' . string_attribute( $t_name ) . '</option>' . "\n";
+			if( !$t_condensed ) {
+				print_subproject_option_list( $t_id, $p_project_id, $p_filter_project_id, $p_trace, Array() );
+			}
 		}
 	}
 }
diff -Naur mantisbt-1.2.3/core/user_api.php mantisbt-patch/core/user_api.php
--- mantisbt-1.2.3/core/user_api.php	2010-09-22 10:40:58.000000000 +0200
+++ mantisbt-patch/core/user_api.php	2010-09-22 13:58:39.000000000 +0200
@@ -1001,7 +1001,7 @@
 	/** @todo (thraxisp) Should all top level projects be a sub-project of ALL_PROJECTS implicitly?
 	 *  affects how news and some summaries are generated
 	 */
-	$t_todo = user_get_accessible_subprojects( $p_user_id, $p_project_id );
+	$t_todo = $p_project_id == ALL_PROJECTS ? user_get_accessible_projects( $p_user_id ) : user_get_accessible_subprojects( $p_user_id, $p_project_id );
 	$t_subprojects = Array();
 
 	while( $t_todo ) {