Forum Moderators: not2easy
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Everyone was right about this topic and unfortunately the fix turned out to be the use of invalid xhtml. UL tags must be nested within an LI element of a parent UL, or it is NOT valid xhtml.
So, the real fix is to get IE6 and 7 to use CSS that other browsers will ignore. In my example, the parent LI of the nested UL element has the class name "container_". Here is the CSS I used to fix the problem.
li { font-size: 1em; }
li.container { list-style-type: none; }
li.container_ ul { margin-top: 0; }/* W3C COMPATIBLE */
*:first-child+html li.container_ ul { margin-top: -1em; }/* IE7 HACK */
* html li.container_ ul { margin-top: -1em; }/* IE6 HACK */
This worked for me!