This mod eliminates products from the drop down menu if they are a. a disabled product AND/OR b. a product in a disabled category, if the enable/disable categories mod is installed.

1. in catalog/admin/featured.php:

FIND:
$featured_query = tep_db_query("select p.products_id from " . TABLE_PRODUCTS . " p, " . TABLE_FEATURED . " s where s.products_id = p.products_id");

REPLACE WITH: if you do not have catagory enable diable contrib installed
// 10 Aug 2007 eliminate disabled products and products in disabled categories
$featured_query = tep_db_query("select p.products_id from " . TABLE_PRODUCTS . " p, " . TABLE_FEATURED . " s on p.products_id = p2c.products_id where s.products_id = p.products_id OR p.products_status = '0'");

OR if you have catagory enable/disable contrib installed:
// 10 Aug 2007 eliminate disabled products and products in disabled categories
$featured_query = tep_db_query("select p.products_id from " . TABLE_PRODUCTS . " p, " . TABLE_FEATURED . " s left join " . TABLE_PRODUCTS_TO_CATEGORIES . " p2c on p.products_id = p2c.products_id left join " . TABLE_CATEGORIES . " c on p2c.categories_id = c.categories_id where s.products_id = p.products_id OR p.products_status = '0' OR c.categories_status = '0'");


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