You have to ask IE to be standards compliant
I found a link to this article which says you have to use a particular doctype declaration to get it to render like everything else out there. Look carefully... the difference comes between this:
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
and this:
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd">
Without the second part, you get the goofy rendering with CSS padding. Lame!
Whatever IE becomes in Longhorn, it better be special, because things like this annoy me.