> Using an unordered list seems to be the prevalent method for creating
> a navigation menu. Is there something inherently wrong, such as
> browser compatibility, in using multiple left floated divs to style a
> horizontal menu?

The links are grouped semantically using a <ul> and nested <li> items.
Because they're all associated, this seems the 'nicest' way of grouping them 
together.

Of course, it also means that they degrade nicely.   

> 
> The example below works in modern PC browsers.
> 
> http://www.jimdavis.us/test/nav_test.html
> 

Whilst your markup seems to work ok (I've only tested it in Win XP SP2 Firefox 
1.0) - I prefer the <ul> and <li> method.
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