Well, I'm embarassed to say that I do not understand why this happens. Everything is the same, from the css to the navigation provider version as well as spmenu.js. The only 3 differences that I'm aware are :

    1. DNN version, which I'm pretty confident that doesn't affect much. DNN skins are supposed to work fine in both version of the framework.

    2. When I installed the skin on localhost, I had to delete the register tag for Data Illusion Feedback Server. This, however, doesn't affect the appearance also, I believe.

    3. The content of your site. This, in my opinion, is the most possible cause.

Try creating a blank page and see what happens. If that problem is still there, I'm afraid this has gone over my ability and you should ask another DNNer who has more experience in this.

Good luck,
Duc

I see you guys found an answer, but for my 2 pence worth, if you try to create your skin to render correctly in IE, then usually it will work fine in all other browsers. IE's biggest issue is with padding and borders, as it adds these widths to your table/div widths, resulting in a requirement to make slight adjustments.

Another thing I wanted to point out is that there is an object in the XML file you should add for the SolPartMenu of 'clear defaults'  (with values of true/false). If you add this object to your XML file then that would resolve your issue as well, because if you don't then remember that any properties that you do not specify will be inheritently picked up from the DNN Default.css file (i.e. the spacer.gif issue that you had).

Hope this helps.

Regards,

Mark