Notification menu is great but when I click any links from the Notification menu, it will direct to Notification Page.. I really don't like this and its annoying. I would prefer it to direct to topic, reply or status.
That is great news, are you familiar with Facebook Notifications? I hope you can do the same.
"Notifications" link should appear somewhere in the header and when you click on it, it should show like a menu. If there is any new Notifications has arrived (Real Time / Ajax) it should show green circle with number of update just like the inbox.