Hi Stephen,
Actually, I'm the guy who did that Kendall tree. Sorry, I just was searching on the tree and found your post now, over a year after you did the post and I did the work.
It's done with CSS "decendant selectors." Here is where you can find the fairly straightforward explanation:
http://www.w3.org/TR/CSS2/selector.html#descendant-selectors
So, I made a style call in the css for the first level like this:
.TreeViewControl .TreeViewNode {/* style goes here */}
And the second level can be accessed like this:
.TreeViewControl .TreeViewNode .TreeViewNode {/* style goes here */}
You can drill down like this for as many child elements as you want. Mind you, these CSS class names are arbitrary; you can set them in the XML of your skin if you use HTML, or in the attributes of the dnnTreeView if you use ASCX skin development.
My problem is, it looks like the new version of the dnnTreeView control doesn't use nesting, so this technique may not work. If I see a path to this solution I'll post back here, and I'll watch this thread to see if I can help anyone.