Firefox button menus and Menu Bar menus are different. Close Tab last appeared on the File Menu in Firefox 3.6.x.

• right-click the tab and choose "Close tab" (must have more than one tab open) OR
• CTRL+W

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Not related to your question, but...

You need to update some plug-ins:

• Plug-in check: https://www-trunk.stage.mozilla.com/en-US/plugincheck/
• Adobe Shockwave for Director Netscape plug-in: Installing (or Updating) the Shockwave plugin with Firefox
• Shockwave Flash (Adobe Flash or Flash): Updating Flash in Firefox

I do NOT even see the CLOSE TAB option any more. It's disappeared. Mine just shows NEW TAB below that NEW WINDOW and below that OPEN FILE.

Some menu entries in the main menu bar are hidden if you use the mouse and only appear if you use the keyboard to open the menu (Bug 626825).

You can see the difference if you use Alt+F to open the File menu or other menus like the Edit menu (Alt+E) and Bookmarks menu (Alt+B) and compare that to what you see if you use the mouse to open the menu after you have made the menu bar visible by tapping Alt or by pressing F10.

Add code to userChrome.css below the @namespace line to make the hidden items appear again.

• http://kb.mozillazine.org/userChrome.css
• http://kb.mozillazine.org/Editing_configuration

You can use the ChromEdit Plus or Stylish extension to have easier access to the customization files.

• ChromEdit Plus: http://webdesigns.ms11.net/chromeditp.html

@namespace url("http://www.mozilla.org/keymaster/gatekeeper/there.is.only.xul"); /* only needed once */

/* Always show menu entries with class="show-only-for-keyboard" */
#navigator-toolbox menuitem[class="show-only-for-keyboard"]{display:-moz-box!important}

Do you see the "Close Tab" entry in the File menu if you use the keyboard Ctrl+F to open the File menu?

You can also close a tab with a middle-click on that tab or right-click the tab on the tab bar.

If you want that entry to appear in the File menu all the time then you can install the ChromEdit Plus extension.
That extension adds a ChromEdit Plus entry to the Tools menu.

• Go to: Tools > ChromEdit Plus > ChromEdit
• Go to the userChrome.css
• Paste the above posted code in the editor text area
• Click Save to save the code to userChrome.css and click Restart to close and restart Firefox.

• Press F10 or tap the Alt key to bring up the "Menu Bar" temporarily if the Menu Bar is hidden.