White space in lists - IE 7 beta 2

This test page is a cut-down version of the Nomensa.com template, where the navigation on the left only comes together when you remove white space and line breaks between the list items. Very un-HTML friendly :-(

Having taken out the IE 5-6 work arounds, it comes out very badly in 'standards' mode in IE 6, overlapping etc, so there has been some improvement.

This bug appears to have been fixed in IE7 RC1, so this page is now referenced under the archive section.