> div#menu ul.tree {
>    float: left;
> }
> 
> ...to isolate outer ul containers from their parent - div#menu. That
> will fix indentation/line-up in that IE version.

Thanks Georg!  That worked like a dream.  But since it took me a little while 
to figure out what you were talking about, here's a sum up for anyone who's 
interested.

The extra padding was coming from the div#menu.  To fix it, I had to float the 
list so the padding would happen outside the list _container_ instead of the 
list _text_.

---Tim
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