Index: wp-includes/general-template.php
===================================================================
--- wp-includes/general-template.php	(revision 1921)
+++ wp-includes/general-template.php	(working copy)
@@ -1268,15 +1268,29 @@
 		}
 		if ( $results ) {
 			$after = $r['after'];
+			$pyear = "XXXX";
 			foreach ( (array) $results as $result ) {
-				$url = get_month_link( $result->year, $result->month );
-				/* translators: 1: month name, 2: 4-digit year */
-				$text = sprintf( __( '%1$s %2$d' ), $wp_locale->get_month( $result->month ), $result->year );
+				$y = sprintf("%04d", $result->year);
+				$m = sprintf("%02d", $result->month);
+				if ($y != $pyear) {
+					if ($pyear != "XXXX") {
+						$output .= "</li>";
+					}
+					$pyear = $y;
+					$pmonth = "XX";
+					$output .= '<li><b><a href="/' . $y . '/">' . $y . '</a>:</b> ';
+				}
+				if ($pmonth != "XX") {
+					$output .= " | ";
+				}
+				$pmonth = $m;
+				$output .= '<a href="/' . $y . '/' . $m . '/">' . $m . '</a>';
+
 				if ( $r['show_post_count'] ) {
-					$r['after'] = '&nbsp;(' . $result->posts . ')' . $after;
+					$output .= '&nbsp;(' . $result->posts . ')';
 				}
-				$output .= get_archives_link( $url, $text, $r['format'], $r['before'], $r['after'] );
 			}
+         $output .= "</li>";
 		}
 	} elseif ( 'yearly' == $r['type'] ) {
 		$query = "SELECT YEAR(post_date) AS `year`, count(ID) as posts FROM $wpdb->posts $join $where GROUP BY YEAR(post_date) ORDER BY post_date $order $limit";