These test show only singular instance of an element inside a container. The adverse effects when a container element has haslasyout only affects the margins of descendant elements that sit against (adjoining margins) the containers' containing block edge or padding edge if there is padding. Simply put, the top margin of the first child and the bottom margin of the last child of the parent container are the only margins affected.
Each example consists of:
IE shows wrong behavior with the first two examples. The vertical margins of paragraph and heading have disappeared (wrong). The vertical margins of these descendant div element, stick out beyond it's container, thus pushing the container down from the grey div by 20 pixels and pushing the bottom grey div away from the container by 20 pixels (correct).
1a. paragraph
IE shows wrong behavior for the next three examples. The container and descendant elements have hasLayout and this causes the paragraph and the headings' vertical margins and the divs' bottom margin to disappear (wrong). The divs' top margin does not collapse into the adjoining vertical margins of the container and stick out beyond the container, but are contained by the containers' content/padding edge (wrong). This should only happen if the container has padding or a border.
2a. paragraph
IE shows wrong behavior for the first two examples. The descendant elements have hasLayout since they are floated and this causes the paragraph and the headings' vertical margins to disappear (wrong). The divs' vertical margins do collapse into the adjoining vertical margins of the container and stick out beyond the container (correct).
3a. paragraph
IE shows wrong behavior for the next three examples. The container and descendant elements have hasLayout and this causes the paragraph and the headings' vertical margins and the divs' bottom margin to disappear (wrong). In Example 4c, The container has hasLayout and this causes the divs' bottom margin not to collapse but be contained by the containers' padding edge (wrong). The divs' top margin is 20 pixels away from the container content edge (correct).
4a. paragraph
Please see the same test repeated but with static divs instead of floats.