A CSS validator 'badge' ?? Why ?? It's nonsense.
It looks nice, although I have to agree, for a town history the gray is rather dark and dreary.
The Flash menu is nice, but terrible for accessibility. If you're going to make your nav Flash, make sure you provide a TEXT ONLY alternative menu. Search engines spiders can't read Flash ! You also should NOT use the <embed> tag to include active content like Flash. This will cause IE users headaches, they won't see your Flash, which is worse because it's your menu. They will be required to click twice before your Flash menu ever comes up !
Replace the embed with any one of these methods:
http://www.karlcore.com/articles/article.php?id=2
CSS -wise :
Common mistake of beginners - using position:absolute on everything, or position:anything on everything. Not necessary for either and all that absolute positioning will cause you headaches. If you want to create a fluid layout, learn to use Floats, percents and em's. Let the normal document flow work for you and position only when it's necessary.
You have re-used the ID 'navlist' on several lists. ID's MUST be UNIQUE, you cannot re-use them. If you want to re-use a style, use a CLASS.
If you're going to use the XHTML DOCTYPE, then you must follow the rules for that doctype - ALL tags must be closed; all images must have an ALT attribute, even if it's alt="". No presentational markup like 'align=center' either, and no deprected tags like <font>.
You've got <li class="stylex" all over the place. Save yourself a LOT of work and define the style on the <LI> in your CSS and leave off the class in your html. You may have to use descendent selectors to achieve your results.
You have <span>s like <span class="nameoflist">List four</span>. The purpose of CSS is to NOT do stuff like this. Define a style for the heading text, give each list an ID, then you can target the list heading in your CSS file and dump the spans.
Don't use PT or PX for font sizing. This prevents IE users from re-sizing the text if they find your font size to be too small. Use % or em for text sizing.