Jquery update "intterupts" Admin Menu Drupal 7 system. minimalistic, almost no modules installed and the site works fine. The problem:

From the moment I've installed the module Jquery Update, There is no more Dropdown by the Admin Menu module... Please help.
Navigate to 

admin/config/development/jquery_update


and set the Default jQuery Version to 1.8 or higher

and the Alternate jQuery version for administrative pages to 1.7 (1.5 and lower has issues with views and other modules)

Then clear your Drupal and browser cache if need be.

If you don't see these settings in jquery update ui then install the latest dev version of jquery update.