As far as I know the only way to get around that whitespace bug in IE is to put all the markup on one non-breaking line. That is, remove all the line breaks and extra space between the[list], <li>, </li> and </ul> tags. That's an easy hack to stomach if you can output it with a server side language. For instance, if I were using PHP on the server I could do something like this:
echo "[list]".
"<li><a href='#'>link</a></li>".
"<li><a href='#'>link</a></li>".
"<li><a href='#'>link</a></li>".
"<li><a href='#'>link</a></li>".
"<li><a href='#'>link</a></li>".
"</ul>\n";
I can still read the code in the source file, but in the browser when I view the source, it looks like this:
[list]<li><a href='#'>link</a></li><li><a href='#'>link</a></li><li><a href='#'>link</a></li><li><a href='#'>link</a></li><li><a href='#'>link</a></li></ul>
And there is no extra whitespace in IE.
I've also had some success with applying a display: inline; declaration to the <li> elements, but that hack can have other nasty repercussions, depending on the layout.
HTH!
Regards,
Rich
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