SharePoint 2007 fails to highlight correct top navigation tab in some cases.
Check for the following causes:
- Highlight will work ONLY for content pages (not for AllItems.aspx or for /documents)
- The highlight will work ONLY for relative URL’s (Not for https://sites/pages/abc.aspx, But will work for /pages/abc.aspx)
- It will work if NO duplicates in the current navigation set (i.e. Every menu item should point to a unique URL)
- Only for the pages coming for “Pages” directory / Root of the Web
- Show pages should be checked under : Site Settings > Modify Navigation