IE7-/Win Flicker with transparent background on hover bug

Below are two list menus with anchor links that are absolutely positioned. When hovering the anchor links (blue background) vertically in IE7- the background flickers. The portion of the anchor link that flickers is depended on the text size. The bug shows a difference and reverse effect if the list has a dimension. Example 1 has a height and width for the list where Example 1 has none. In Example 2, even thought the anchors have been taken out of the flow by absolute positioning IE7- still show the list with a height? The bug seems to be caused by the list and/or list items having an intrinsic height?

The bug disappears in Example 1 when the list item has layout, width:100% or float:left;.

Please see this demonstration for a more common example of this bug.

Bug first demonstrated by Mary Curtin.

Example 1

Example 2

If this element has a height or top margin, the bug in Example 2 is not present. 9 Jan 2009 - CSS Class tests