> I'm hoping someone on this list will tell me the correct behaviour for
> this situation.
> in IE7 the undimensioned div inside the floated div is only as wide as
> its content.
> AIUI an undimensioned div would be as wide as its container.

I haven't checked the spec, but every other browser (from opera 5 and
IE 5 to current geckos) behaves as you expect. I'd call it an IE7 bug.

I've simplified your testcase a little.
http://ultimorender.com.ar/funkascript/css/tests/inside_floated.htm

It seems you can get IE7 to behave like other IE's by specifying
div#one{ min-width: 100%; }

The problems seems to be related to #one's height being specified.

Let me know if this helps!

-- 
Manuel Razzari
YO   -> http://ultimorender.com.ar/funkascript
CVAM -> http://conVistaAlMar.com.ar
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