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.home #fresh_portfolio { margin: 2.3em 0 0 0; }
.home #fresh_portfolio ul { margin: 2.5em 0 0 0; }
.home #fresh_portfolio ul li h4 { padding:0 2.3px 0 392.3px; }
.home #fresh_portfolio ul li p { padding:0.5em 2.2px 0 392.2px; font-size:1.35em; font-weight:bold; line-height:1.15em; color:#4a3f2c; font-family:'Lucida Sans', 'Lucida Grande', 'Trebuchet MS', Helvetica, Verdana, Arial, sans-serif; }
.home #fresh_portfolio ul li p.date { padding:0 0.3em 0 393px; font-size:1em; line-height:0.5em; text-transform: uppercase; color:#105496; }
.home #fresh_portfolio ul li img { float:left; margin:-3.7em 0 0 3px; width:381px; height:94px; background:#333; }
.home #fresh_portfolio ul li.first img { height:187px; }
.home #fresh portfolio ul li { padding:0 0 2.55em 0; } THIS BIT DOESN'T WANT TO OBEY;-)
It seems you made a little typo. "fresh portfolio ul li" instead of "fresh_portfolio ul li". Once you change that it'll work.
I see some weird things when looking at your CSS file. For example:
I recommend looking through all the code for this kind of 'mistakes' and correcting them, maybe it will solve some issues. As for the 'emptyness' in IE, that's just really weird. I can't see it right now, because I'm on a Mac, but it sounds like some container element needs an overflow:hidden or something like that. (I'm not sure, though)
The white bar at the bottom of the page can be removed by deleting this part (I've been playing around with the 'edit css' function of the Firefox web developer extension for a bit):
html { background:url('images/ruler.jpg') repeat-x; }
Over here, the sifr elements are working fine in Firefox (2.0.0.6), by the way…
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