Matt,

One of the CSS gurus can provide a detailed explanation as to "WHY", but my
off-the-cuff explanation is that your IMG is contained within that first P,
as such IE "binds" them together as a block element for layout purposes. 

(One of the folks here can provide a "real" explanation and correct what are
probably poor word choices on my part.) 

If you move the IMG outside of the P, you should get the expected results.

Also, from a content structure standpoint -- not a visual standpoint -- if
the image is not specific to that paragraph, it should not be contained
within that.

...Rob


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