Why is this bug important to fix?
When web developers, supporters of web standards and interoperability, will want to create an horizontal navigation menu/list of links, they will prefer/want to use a list because it is semantically the best; it will degrade gracefully in non-CSS capable browsers or in web-aware softwares with limited CSS capabilities. So to style such list to layout horizontally, a developer will resort to display: inline. There are now already lots of examples of such coding practice to achieve an horizontal navigation menu/list of links.
This bug was first reported in alt.html web authoring newsgroup discussion forum with subject line: "IE and a CSS bug" on July 9th 2008 from freemont
Firefox 1.5, Firefox 2.x, Firefox 3, Opera 9.27, Opera 9.51, Safari 3.1.2, Safari 4.0, Konqueror 3.5.8, Amaya 10.0.1, Hv3 TKHTML alpha 16, Seamonkey 1.x, Seamonkey 2.x, NS 7.2, K-meleon 1.x, Galeon 2.0.4, Epiphany 2.22 all pass this test.
This bug has been reported at connect's IE beta feedback as bug 365838.
Update: This bug has been FIXED in Internet Explorer 8 Partner pre-RC1 build 6001.18343 released on December 11th 2008. Otherwise, Internet Explorer 8 Partner pre-RC1 build 6001.18343 PASSES this specific and particular testcase.