Hi,
I'm not sure what you are trying to do with that absolute positioning as it doesn't display in any browser lol 
I would do something like this:
Code:
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
"http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html dir="ltr" xml:lang="en" lang="en" xmlns="http://www.w3.org/1999/xhtml">
<head>
<title></title>
<meta http-equiv="content-type" content="text/html; charset=ISO-8859-1" />
<style type="text/css">
#masthead {
width: 100%;
height: 80px;
background: url(images/pmoblogo7.jpg.jpg) no-repeat fixed;
}
#menu {
width: 100%;
}
*html #menu li{ height: 22px; }
html>body #menu li{ height : 22px;line-height:22px; }
#menu ul {
margin: 0 0 0 5px;
padding: 0;
display: inline;
list-style: none;
}
#menu li {
margin: 0 10px 0 0;
display: inline;
list-style: none;
}
#menu a {
padding: 0 3% 0 0;
font-weight: bold;
border-right: 1px solid #fff;
}
#menu a:link {
color: #fff;
text-decoration: none;
}
#menu a:visited {
color: #fff;
text-decoration: none;
}
#menu a:hover {
color: #000;
text-decoration: underline;
}
#menu form {
margin: 0;
padding: 0;
float:right;
width:14.8em;
}
#menu label {
display: block;
float: left;
padding: 0 1% 0 0;
color: #fff;
font-weight: bold;
}
#menu .srchbx {
display: block;
float: left;
}
#menu .go {
background: #999;
color: #fff;
font-weight: bold;
border: 1px solid #eee;
}
* html #menu input,* html #menu input {vertical-align:bottom}
</style>
</head>
<body>
<div id="masthead"></div>
<div id="menu" style="background-color:#6599FE;">
<form>
<label for="search">Search</label>
<input type="text" name="search" class="srchbx" id="search" style="border: 1px solid #6599FE;" />
<input type="submit" name="submit" value="Go" class="go" />
</form>
<ul>
<li><a href="index.htm">Home</a></li>
<li><a href="links.htm">Organisation chart</a></li>
<li><a href="a-z.htm">A-Z</a></li>
<li><a href="links.htm">Links</a></li>
<li><a href="feedback.htm">Feedback</a></li>
</ul>
<br style="clear:both" />
</div>
</body>
</html>
But I'm not reallay sure what you were trying to do exactly. Input buttons and submit buttons are hard to line up and pu will probably end us using classes and manipulating the padding on each.
Paul
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