Actually, I believe ems are based on the prior font-size of the element in 
which its contained. rems are based on body.
For example, If you have a div in the body with no font-size set and a span 
inside that div with font-size set to 120% then it will be 120% of the body 
font-size.
However, if the div has a font-size of 110%, then the span would have a 
font-size that is 120% of 110% the divs calculated font-size would be of the 
body font-size.
Stay with me.. :)

Example 1:
<Body font-size = 16px
        <div font-size = none set
                <span font-size (120%) = 19.2px

Example2:
<Body font-size = 16px
        <div font-size (110%) = 17.6px
                <span font-size (120%) = 21.12px

Please someone correct me if I am wrong.
HTH,

Best,

Karl DeSaulniers
Design Drumm
http://designdrumm.com
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