I have it set that my URL bar doesn't remember things when I type in a URL. However, when I type, it still gives me a drop down of sites I've been to. Why? And how do I fix this? It's really annoying
Are you using the old Firefox 3.0.17 version (Help > About) that shows in your post or gives that the wrong version?
In the Firefox 3.0.x versions you are limited about what to do with the location bar.
- Old Location Bar: https://addons.mozilla.org/firefox/addon/7637
If you update to Firefox 3.5.x or 3.6.x then you have more options for the location bar behavior.
See Smart Location Bar