Hi,
I don't know what the answer is to the vertical distribution of space in tables but the answer to your problem is simply to keep the cells even. If you have one cell then you can stack the divs in the cell without any extraneous code or any stretching.
After all tables were designed with exactly that concept in mind where cells would stretch along with adjacent cells.
Code:
<?xml version="1.0" encoding="iso-8859-1"?>
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
<title>CoTangent Marketing Design - Home - Robert Phair</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" />
<style type="text/css">
/* main.css: CoTangent main style sheet (c) Robert Phair 2004 */
table {
table-layout: fixed;
border: 3px black solid;
border-collapse: collapse;
border-spacing: 0px;
}
td {
border: 3px black solid;
margin: 0px;
padding: 10px;
}
h1 {
font-size: 2em;
}
#logo {
text-align: center;
vertical-align: middle;
width: 260px;
margin: 0;
}
#logo h2, #logo h3 {
display: none;
}
#headline {
background-image: url("http://cotangent.com/broken-spacing/...our-cyclic.gif");
font-size: 0.8em;
font-family: Verdana, Helvetica, sans-serif;
color: white;
}
#headline h1 {
margin: 0px;
}
#navigation {
height: 1%;
vertical-align: top;
background-image: url("http://cotangent.com/broken-spacing/...our-cyclic.gif");
border-bottom: solid black 3px;
}
td#navigation {padding:0}
#navigation a {
display: block;
text-decoration: none;
font-family: "Palatino Linotype", Palatino, serif;
font-weight: bold;
font-size: 1.3em;
color: white;
padding-left: 12px;
padding-right: 12px;
}
#navigation p {
color: #f99;
padding:10px 12px;
margin: 0;
}
#navigation a.sublink {
padding-left: 1em;
font-size: 0.9em;
font-weight: normal;
color: white;
}
#navigation p.current {
font-family: "Palatino Linotype", Palatino, serif;
font-weight: bold;
font-style: italic;
font-size: 1.3em;
}
#navigation p.sublink {
padding-top: 0.1em;
padding-left: 1em;
font-size: 0.9em;
font-weight: bold;
font-style: italic;
}
#navigation a:hover {
background-color: #900;
}
#navigation a:active {
color: #c66;
}
#testimonial {
vertical-align: top;
margin-bottom: 10px;
background:#fff;
color:#000;
border-top:4px solid #000;
border-bottom:4px solid #000;
width:100%;
}
#testimonial p.quote {
font-style: italic;
color:#000;
}
#testimonial p.author {
font-weight: bold;
color:#000;
}
#testimonial p.author a {
text-decoration: none;
font-weight: bold;
font-style: italic;
color: #090;
}
#testimonial p.author a:hover {
color: #060;
}
#resource {
height: 1%;
vertical-align: top;
background-color: #ccc;
font-family: "Palatino Linotype", Palatino, serif;
}
#resource strong {
color: #c00
}
#mini-report {
height: 1%;
vertical-align: top;
font-family: "Palatino Linotype", Palatino, serif;
font-size: 0.8em;
}
#mini-report .mini-announce {
color: #00c;
}
#mini-report p.mini-title {
margin-top: 0;
font-weight: bold;
}
#mini-report p.mini-byline:before {
content: "\2014\00A0";
}
#mini-report p.mini-byline {
font-style: italic;
}
#empty-box {
height: 80%;
background-image: url("http://cotangent.com/broken-spacing/...our-cyclic.gif");
}
#copy {
background-image: url("http://cotangent.com/broken-spacing/images/whitmarb.gif");
font-family: "Palatino Linotype", Palatino, serif;
vertical-align: top;
}
#photo {
float: left;
border-right: solid black 3px;
border-bottom: solid black 3px;
margin-right: 10px;
margin-bottom: 5px;
background-color: white;
}
#photo img {
}
#photo p {
font-style: italic;
font-size: 0.7em;
line-height: 0.7;
text-align: center;
margin: 0;
padding-bottom: 5px;
}
#photo a {
text-decoration: none;
color: #00c;
}
#photo a:hover {
text-decoration: none;
color: #66f;
}
p.first {
margin-top: 0;
}
p.last {
margin-bottom: 0;
}
#copy a, p.resource a {
text-decoration: none;
font-weight: bold;
color: #00c;
}
#copy a:hover, p.resource a:hover {
color: #66f;
}
#copy a.article, p.resource a.contact-us {
color: #090;
}
#copy a.article:hover, p.resource a.contact-us:hover {
color: #060;
}
#copy a.report {
color: #c00;
}
#copy a.report:hover {
color: #600;
}
#copy a.product {
text-decoration: underline;
}
#service-contact {
margin-top: 10px;
border-top: solid black 1px;
}
#service-contact a.free {
color: #c00;
font-weight: bold;
}
#service-contact a.free:hover {
color: #600;
}
#info {
vertical-align: top;
font-family: "Palatino Linotype", Palatino, serif;
background-image: url("http://cotangent.com/broken-spacing/images/whitmarb.gif");
text-align: center;
}
#info p {
margin: 0;
}
#info p:first-child {
margin-top: 0;
}
#info #contact a {
display: block;
text-decoration: none;
font-family: Courier, courier, sans-serif;
font-weight: bold;
color: black;
font-size: 1.2em;
margin: 5px;
padding: 5px;
}
#info #contact a:hover {
display: block;
background-color: #999;
}
#info #contact a:active {
color: #c66;
}
#info #contact a:visited {
border: none;
}
.compliance {
font-size: 0.8em;
font-family: "Palatino Linotype", Palatino, serif;
}
.compliance img {
margin: 3px;
border-color: black;
border-width: 2px;
background-color: white;
}
.compliance a img {
border-color: white;
}
.compliance a:hover img {
border-color: black;
}
.terms {
font-size: 0.8em;
font-family: "Palatino Linotype", Palatino, serif;
}
.terms a {
text-decoration: none;
font-weight: bold;
color: #c00;
}
.terms a:hover {
color: #666;
}
p.print-ready {
margin-bottom: 0;
}
.print-ready a {
font-size: 0.8em;
font-style: italic;
font-weight: bold;
text-decoration: none;
color: #00c;
}
.print-ready a:hover {
color: #666;
}
#subscribe {
font-family: "Palatino Linotype", Palatino, serif;
background-color: #999;
}
#subscribe p {
margin: 0;
}
#subscribe em {
color: #c00;
}
#subscribe a {
display: inline;
}
#subscribe form {
text-align: center;
margin-top: 5px;
margin-bottom: 0px;
}
#subscribe p:first-child {
margin-bottom: 5px;
font-weight: bold;
}
#logo-bottom {
text-align: center;
}
#logo-bottom img {
border-width: 2px;
border-color: #999;
}
#logo-bottom a:hover img {
border-color: black;
}
.privacy-notice {
font-weight: bold;
font-style: italic;
}
.privacy-notice em {
color: #c00;
text-decoration: underline;
}
.privacy-notice a {
text-decoration: none;
color: #00c;
}
.privacy-notice a:hover {
color: #66f;
}
.free {
color: #c00;
font-weight: bold;
}
#headline .free {
color: #f00;
}
p.footnotes {
font-size: 0.8em;
margin-top: 0;
border-top: 1px black solid;
margin-bottom: 0;
}
@media print {
#copy {
float: none;
}
#copy-text {
float: none;
}
#logo-bottom img {
border-width: 0;
}
#copy a {
font-weight: normal;
}
.compliance img {
background-color: white;
}
}
</style>
<script type="text/javascript" src="http://cotangent.com/external.js">
</script>
</head>
<body>
<table summary="CoTangent Marketing Design - Home - Robert Phair">
<tr>
<td id="logo"> <div id="logo-top"> <img src="http://cotangent.com/images/logo-md.gif" alt="CoTangent Marketing Design" />
</div>
<h2>CoTangent</h2>
<h3>Marketing Design</h3></td>
<td id="headline"> <h1>Powerful strategies for rapid business growth</h1></td>
</tr>
<tr>
<td id="navigation"> <p class="current">Home</p>
<a href="services.html">Services</a> <a href="
newsletter.html">Newsletter</a> <a href="resources.html">Resources</a> <a href="credentials.html">Credentials</a>
<a href="
contact.html">Contact</a> <div id="testimonial">
<p class="quote">"Robert's unique talents and business acumen based on
creating a synergy between marketing media and the latest Open Source
IT technology will make his firm the vendor of choice for United States,
European, and Asian firms tired of old formulas which are no longer
valid."</p>
<p class="author">Roger C. Parker <a rel="external" href="
<A href="http://www.google.com/search?hl=en&q=Roger+C.+Parker">(about)</a></p">http://www.google.com/search?hl=en&q=Roger+C.+Parker">(about)</a></p>
</div></td>
<td id="copy" > <div id="copy-text">
<p class="first">Whether your business is well-established or ready to
experience a growth phase, it needs a focused marketing effort to survive
in today's marketplace. Traditional methods of advertising remain useful
only for businesses based on mass production: small to medium sized
business must use more progressive marketing methods to distinguish
themselves amidst the flood of information brought about by the Internet.</p>
<h3>Revolution requires evolution</h3>
<p><strong>CoTangent</strong> has recognized the need to adapt popular
marketing methods to suit the needs of an information-saturated customer
audience. For a business to grow and prosper in today's global economy,
it has to establish and maintain expert status in the eyes of its customers
by regularly offering solutions to their problems and satisfying their
ongoing needs.</p>
<p>In a world where cheaper solutions drive the market for outsourcing,
businesses that offer high-quality and often higher-priced products
and services must have marketing efforts that match their own standards
of excellence. These efforts must include the best of conventional direct
marketing methods as well as those that take advantage of the most current
and capable Information Technology available for online marketing.</p>
<p><strong>CoTangent</strong> meets these needs with four basic marketing
design services:</p>
<ul>
<li><a href="pdf-premium-design.html">Newsletters and premiums</a></li>
<li><a href="direct-mail-design.html">Dynamic direct mail design</a></li>
<li><a href="css-web-design.html">CSS web site creation</a></li>
<li><a href="open-systems-server.html">Open systems server provisioning</a></li>
</ul>
<p>Each of these is an independent method for businesses to attract customers
and keep them involved as regular clients. <strong>CoTangent</strong>
also offers <a href="
consulting.html">consulting services</a> to customize these methods and deploy
any related software technologies that may be appropriate for your business
and your customer base.</p>
<p>Please take the time to browse the information resources on this web
site and request any of several <a href="resources.html">free reports</a>
that describe how these strategies and technologies can begin to build
your customer base <em>immediately</em>. Also, please accept our offer
of a complimentary subscription to the leading <a href="
newsletter.html">newsletter</a> for creative marketing strategies, unique
software solutions, and high-tech tools to promote and sustain the growth
of your business.</p>
<p>Warm regards,</p>
<p class="last">Robert Phair, Principal</p>
</div></td>
</tr>
<tr>
<td id="info"> <p>© 2004 Robert Phair</p>
<div id="contact">
<script type="text/javascript">
//<![CDATA[
<!--
var foo = "rphair";
var bar = "cotangent.com";
document.write('<a href=\"mailto:' + foo + '@' + bar + '\">');
document.write(foo + '@' + bar + '<' + '/a' + '>');
//-->
//]]>
</script>
</div>
<p class="compliance">This site meets the most current web design standards:<br />
<a href="http://validator.w3.org/check/referer" rel="external"><img src="
images/valid-xhtml.jpg" alt="XHTML compliant" /></a> <a href="
http://jigsaw.w3.org/css-validator/check/referer" rel="
external"><img src="http://cotangent.com/images/valid-css.png" alt="CSS compliant" /></a></p>
<p class="terms">Please read <a href="terms-of-use.html" rel="
external">terms of use</a></p>
<p class="print-ready"><a href="support/css-printer-friendly.html" rel="
external">This page is printer-friendly</a></p></td>
<td id="subscribe"> <p>Subscribe to the <span class="free">free</span> bi-weekly
PDF newsletter:</p>
<div id="logo-bottom"> <a href="newsletter.html"><img src="http://cotangent.com/images/logo-sub.gif" alt="
CoTangent Marketing Design for Intelligent Business" /></a> </div>
<div id="subscribe-form">
<form method="post" action="subscribe.php">
<p><strong>email:</strong>
<input type="text" name="email" size="16"
maxlength="254" />
<input type="submit" value="Subscribe (Letter)"
name="submit" />
<input type="submit" value="Subscribe (A4)" name="
submit" />
</p>
<p class="privacy-notice">Your email address will <em>never</em> be
given to anyone: see <a href="privacy.html" rel="external">privacy
policy</a></p>
</form>
</div></td>
</tr>
</table>
</body>
</html>
The above does what your fixed layout does without any non sematic code added. The rollovers on the nav are now full width and not gapped as in both your examples. You should arrange your nav into a list format rather than non semantic anchors stacked on top of each other without any apparent structure to them.
tables
are a valid HTML data structure
Tables are a valid data structure, unfortunately your layout doesn't fall into that category and makes no sense when linearised. However you are allowed to use tables for layout until browsers can replicate the behaviour with css and as long as you simplify their structure and try to keep a logical relationship between cell and following content.
If no other mechanism exists to construct the layout you require then of course use tables if they are presently the only solution for certain layouts. However I would avoid spanning cells when not necessary (and avoid nested tables) and use the table as a wrapper to keep the layout together but style as much as possible with css within minimal cells. (I will use a table if I the layout cannot be done any other way so I have nothing against tables.)
Most of the problems in the css forum that never seem to get solved always have a table in them 
Sorry I couldn't shed any light on your initial problem but hopefully approaching the problem from a different angle will help 
Paul
Paul
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