// Is there any way to adjust the vertical alignment for IE?

Not for list images (as far as I can remember).  I wouldn't be too picky
about stuff like that, but if you really want it to look centered you
have a few options.

1) Bigger (vertically) image that does look centered.
2) Use a background image on the li instead (with a little left
padding).
3) Adjust the font-size and assume the user won't noodle with this. 

I think #1 is the way to go.
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