cute layout, I really like the top image - but I have a few suggestions (if I may)...
The font size for the navigation links is way too tiny.. it's barely legible and once it's hovered it decreases by 50% making it even worse (especially people w/ large screen resolutions). I would even go as far as saying the font-size for the rest of the site is too small (if you care about accessibility, the font-size should be a minimum of 12px/75%). My other suggestion would be to remove the crosshair cursor you have set - nothing is more annoying than visiting a web site and having them change your cursor.
It looks very purdy! I agree with Kyla though, for link styling - I would set the :hover to something that 'changes' the size of it. (ie. bold/italic/fontsize change)
Agreed- you should definitely make the links larger. The navigation should stand out, it shoudln't be hidden.
The layout is gorgeous, though. The main text can be small- if people had eye problems they could just make the text bigger, any browser can do that. It's just the navigation... people would have to make your main text huge just to read it.