Actual (live) results in your browser:
Expected results: the bullet (filled disc) should
be inside the yellow box (screen shot 907px wide, 100px tall):
Actual results in Internet Explorer 8: the bullet
(filled disc) is inside the light green box (screen shot 907px wide, 100px
tall):
Nota bene: The marker box has the yellow background-color; the list-item's principal block box has the light green background-color and is surrounded by a medium solid black border.
References
"An element with 'display: list-item' generates a principal [block]
box for the element's content and an optional marker box as a visual
indication that the element is a list item."
coming from CSS
2.1, section 12.5 Lists
"list-style-position: outside
The marker box is outside the principal
block box."
coming from CSS
2.1, section 12.5.1 on list-style-position
Safari 4.0 and Konqueror 4.2.4 pass this test.