Now over all I thinking this is entirely a bad user experience which ends up with something bad like the “Windows Start Menu”. Menus within menus of scrolling options need to be restructured into a more logical simpler user experience. Anyway, the solution I came up with is to show and hide menu items depending on the mouse location instead of scrolling the contents within the block. My solution works OK but depending on the math some items are hard to click. If I really had need to perfect this script I would adjust it to only modify the list display if your mouse was touching a button at the top or bottom of the list. I saw this approach in the Chrome when you have too many bookmarks to display on the screen.
Overall I just wanted to post this imperfect demo in case anyone is in need of developing a similar solution.