You can't have a popup menu appear when there's another popup menu already active in the call stack. Hit Ctrl-L when debugging to see your call stack, and if there's a popup event already in there, you can't call another popup.
To get around this, you do as Poltergeist showed: you store what option the user chose while in the menu select event in a module-level variable. When control returns to the mouse-up event, you then call a function that performs what they selected based on that variable. I've used an enumeration in the past to store the user's selection.
This seems a little clunky, but is actually a good thing, as this function can be shared between a popup menu, regular menu, and a toolbar.
Chip H.
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