Hi
Can You please tell me precisely which submenu You have in mind ? I can see some content from demo still there. I think it's just a matter of using a right type for menu items because some products are leading to url "#". Try using some VM types there.
About Your questions from PM.
Subcategories are only possible when using menu items with type "Virtuemart Categories", but it will not show products I think. I'm not VM expert, so You better ask on VM forum about that or simply use a module to display products under subcategories
Modules are able to display products by number of hits. Also You can specifie related products in VM configuration. Unfortunately I have not heard about module able to make exactly as You asked for.