I’m just doing some cross browser testing now that I’m launching a site I’ve been building for a friend’s small business. I’m on a Mac, but have been using sites such as IE NetRenderer and BrowserShots to get screens of how the site looks in different browsers on Windows.
I have a feeling something obvious may be staring me in the face, but then again I’ve only seen the issue replicated in IE7! IE8 and 9 are both rendering that menu perfectly!
Remove height from #header (line 25), actually you can remove the whole thing since it’s the only property there, and trigger hasLayout in #tabs with zoom:1, since you’re already using CSS3.