In my Firefox ver 3, I can have the download window minimized and still havw a small line above the taskbar that shows remaining download time. In my ver 5 I cant seem to find that option or how to enale that feature 5

Seems like I want

The download history is part of the regular browsing history, so you would have to disable the history altogether as you've already noticed.
* Tools > Options > Privacy > History: Firefox will: "Use custom settings for history"
**"Remember my browsing and download history"
Firefox manages the downloads in the Downloads folder in the Library.
* Firefox > History > Show All History > Downloads
Future Firefox versions won't use the current download manager (pref: browser.download.useToolkitUI; Bug 726444), but use a toolbar button with a drop down list, similar to the Bookmarks Menu button.

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