I've forked dmenu-ee and fixed a yoffset bug, as well as implemented a completely customizable geometry, added switches for vertfull and scrolloff patches, and made dmenu embeddable while still allowing for customizable opacity and dimming (stock dmenu can embed with -w, but does not have opacity).
I've also added long options (--option) for every option.
Dmenu-ee has itself added multiple features on top of the vanilla dmenu: XFT support, a quiet and a filter option, x and y offset, fuzzy matching, focus-following, tab navigation, full mouse support, and dimming and opacity customization.
In order to build ddmenu you need the Xlib header files.
Edit config.mk to match your local setup (ddmenu is installed into the /usr/local namespace by default).
Afterwards enter the following command to build and install ddmenu (if necessary as root):
make clean install
See the man page for details. The command is still dmenu.