Thank you for the welcome and your tips guys, although i've pretty much customized the start menu to the maximum already.
I did though, through the link Brink gave
Start Menu - Change Height shortened the menu a little bit more but its still big and over-sized. It would be nice if I can shrink it all the way down to the "All Programs" button, just a nice slim start menu with the search bar below. I could do that in XP but i guess since 7 has that list scrolling feature in the All programs menu, it wouldn't be reasonable to have that slim of a menu if 7 cant pop out a menu beside the arrows