1.Login to your blogger dashboard--> layout- -> Edit HTML

2.Scroll down to where you see </head> tag .

3.Copy below code and paste it just before the </head> tag.

<style type='text/css'>
#menu14 {
       width: 200px;
       margin: 10px;
       }

#menu14 ul {
list-style: none;
margin: 0;
padding: 0;
}

#menu14 img {
border: none;
}

#menu14 li a {
       height: 32px;
         voice-family: "\"}\"";
         voice-family: inherit;
         height: 24px;
       text-decoration: none;
       }

#menu14 li a:link, #menu14 li a:visited {
       color: #333;
       display: block;
       background:  url(http://2.bp.blogspot.com/_4HKUHirY_2U/Sw9J34GZyxI/AAAAAAAAAW8/hv18w33snxc/menu14.gif);
       padding: 8px 0 0 10px;
       }

#menu14 li a:hover, #menu14 li #current {
       color: #FFF;
       background:  url(http://2.bp.blogspot.com/_4HKUHirY_2U/Sw9J34GZyxI/AAAAAAAAAW8/hv18w33snxc/menu14.gif) 0 -32px;
       padding: 8px 0 0 10px;
       }
</style>

Note :Please Host menu14.gif yourself.

4.Now save your template.

5.Go to Layout-->Page Elements and click on "Add a gadget".

6.Select "html/java script" and add the code given below and click save.

<div id="menu14">

<ul>
        
<li><a id="current" href="#">Home</a></li>

<li><a href="#">HTML</a></li>

<li><a href="#">CSS</a></li>

<li><a href="#">JavaScript</a></li>

<li><a href="#">Templates</a></li>

<li><a href="#">About</a></li>

<li><a href="#">Contact</a></li>

</ul>

</div>

You are done.

Demo