Drop down box styled Shutdown option appears.

The problem:-

When I press the red 'shutdown' button in the start
menu a new box opens up. It has a drop down box which I need to click which
now includes the options of hibernate and stand by.How do I restore the original look of my shutdown options?

Cause:-

This Win2K style shutdown option appears if the user doesn't use the Welcome Screen and Fast User Switching options.

Resolution:-

1.Open User Accounts in Control Panel.
2.Click Change the way users log on or off.
3.Use Welcome Screen and Use Fast User Switching.
4.Apply options.

Further Reference:-
http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/ua_logon_at_welcome_page_w.mspx