The image in the upper left corner of this paragraph should be floated left, and the edges of the white background should line up with the top and left edges of the image. However, the text should overlap the image's right and bottom sides, lining up with the thick gray lines in the image. This paragraph should have a white background, first of all, which extends to the edges of the element's box. There is no padding set on this paragraph whatsoever.

MSIE 7 fails the same way in the W3C CSS1 Test Suite: 5.5.25 float test page