penders - 5:21 pm on Feb 4, 2012 (gmt 0)

It does not work when I just import it to the linked style sheet which indirectly connects it to the html document

As I mentioned above, this "works" for me. Although whether the output is the desired result is another question.

The div#myid rule works when...

What are you expecting to see when it "works"?

And what I meant was I see a white background with a red color filled div.(thats it, no blue or green) Like you said only the first div is colored red. I must have worded it wrong.

I think there must be some other error in your CSS? I see blue and green (and a bit of red).
From the code you have posted above, there should not be a white background. The background of the viewport should be blue, because of this rule:

* { font-style: italic; background-color: blue ; }

This sets the background-color of the HTML element to blue. You set the background-color of the BODY element to green, but this does not cover the entire viewport (on a regular desktop screen size).