=== modified file 'modules/taxonomy_context/taxonomy_context.module'
--- modules/taxonomy_context/taxonomy_context.module	
+++ modules/taxonomy_context/taxonomy_context.module	
@@ -330,30 +330,35 @@
     $parents_str .= $p->tid . ',';
   }
   $parents = explode(',', $parents_str);
-  $output = "<ul>\n";
+  if ($base) {
+    $child_nodes = taxonomy_context_show_nodes($tid);
+  }
   $children = taxonomy_context_term_children($tid);
+  if ($children || $child_nodes) {
+    $output = "<ul class=\"menu\">\n";
+  }
   if ($children) {
     foreach ($children as $c) {
       $term = taxonomy_get_term($c);
       $params = array('title' => $term->description ? strip_tags(node_teaser($term->description)) : t('View this section'));
-      if ($c == $context->tid) {
-        $params['class'] = 'active';
-      }
       $link = l($term->name, 'taxonomy/term/'. $term->tid, $params);  
       if (in_array($c, $parents)) {
         $output .= '<li class="expanded">' . $link . "\n";;
-        $output .= taxonomy_context_show_children($c, false) . "</li>\n";
-        $output .= '<ul>' . taxonomy_context_show_nodes($c) . "</ul>\n";
+        $output .= taxonomy_context_show_children($c, false) . "\n";
+        $output .= '<ul class="menu">' . taxonomy_context_show_nodes($c) . "</ul>\n";
+        $output .= "</li>\n";
       }
       else {
         $output .= '<li class="collapsed">' . $link . "</li>\n";
       }
     }
   }
-  if ($base) {
+  if ($child_nodes) {
     $output .= taxonomy_context_show_nodes($tid);
   }
-  $output .= "</ul>\n";
+  if ($children || $child_nodes) {
+    $output .= "</ul>\n";
+  }
   return $output;
 }
 
@@ -395,9 +400,6 @@
   $result = db_query(db_rewrite_sql($sql), $tid);
   while ($node = db_fetch_object($result)) {
     $params = array('title' => strip_tags($node->teaser));
-    if ($node->nid == $context->nid) {
-      $params['class'] = 'active';
-    }
     $link = l($node->title, 'node/'. $node->nid, $params);
     $output .= '<li class="leaf">' . $link . '</li>';
   }
@@ -436,7 +438,7 @@
       }
 
       $block['subject'] = $vocabs[$delta]->name;
-      $block['content'] = '<div class="menu">' . taxonomy_context_show_children($context->root_tid, true) . "</div>\n";
+      $block['content'] = taxonomy_context_show_children($context->root_tid, true) . "\n";
       return $block;
   }
 }