Actually, a showmenu2 connection may be inaccurate. I'm using the generic template, and I thought showmenu2 was a requirement but I looking some more and I can't see where showmenu2 is used.
The Generic template does use its own menu system, please check if the error exists for other templates too (doc)
The Generic template seems to be working okay on it's own.
However, my other installation is still not working. I double checked both config files and definitely set up with different databases and even different prefixes as well.
- I'm thinking that the installation missed a path somewhere and knocked my other template for a loop
- or else something about 2.7 is interferring with it.
I'll guess I'll have to try removing the whole 2.7 install and seeing if there is still a problem.
--- I guess it's possible that the template was edited somehow and messed up, but I am pretty sure I haven't made any changes to it for several months.

You know, a "last modified" field display on components might be a a good idea.
** News Module bug er, I thought it was a bug, but misread the screen, because of the
same old issue that has been driving me batty as a bug!
Problem: READ MORE cannot be placed on the short description line. The Short line is automatically enclosed in <P> tags and the anchor to the READ MORE text is OUTSIDE the paragraph. Thus, you can never have the READ MORE text appear at the
end of your short description, it MUST appear as in following paragraph (and without <P> tags around it, by default).