If your definiton of a drop down box is something like this: <select name="theName"> <option value="http://www.domain.com">http://www.domain.com</option> <option value="http://www.domain2.com">http://www.domain2.com</option>> </select> The answer is that they can read the content, but they don't see this as links.
Search Engines don't count links in drop downs. You can see a real example here: Example page: http://www.dublinevents.com/dublin-hotels/abberley-court-hotel.php If you scroll down, you will see a drop down list with names of all other hotels. Now please see the cached snapshot of the page on Google (click here) or use the option in the Google toolbar to see the cached snapshot of the page. The cached snapshot will again show a drop down list, but if you click and try to see the 'Cached Text' version of the page (click here) or click the link for 'Click here for the cached text only' on the cached page. You will now see a list of only names of those hotels. Also, any javascript links won't be visible.
yes they see :if you use a html list and css and java script only for IE and external files The example : http://www.jaec.info (this is my site - look at the code for the css menu).I tested the links with SEO programs, and also I saw google boot take them