Nope can't figure this one out at all. I hate IE

I reverted back to your first code and this seems to cure the IE8 issues.

So, I used this instead:

#catGroup1_26 li {width: 70px;}

#catGroup1_29 {
position: relative;
width: 70px;
height: 0;
top: -77px;
left: 70px;
}

but I have to add this to IE7 stylesheet:

#catGroup1_29 {top: -84px;}

The trouble I still get is with IE8 in compatibility mode, the line-height seems to be much smaller than the 1_26 group. I've tried adding a line-height:1.5em; to the IE7 stylesheet but I can see from the IE8 developer tool that it's crossed out immediately as though it's being overridden.... I'll move this to a new thread Glen as it's starting to get off topic.