I found an interesting IE7 Bug.
If you have a container that has the overflow set to auto or scroll and within that container you have list-items having relative-positioned elements, IE7 doesn't know what to do with it. Those elements positioned relatively do not abide to the overflow setting.
I'm not quite sure how to express this very well, but you can see what I'm talking about here:
I came up with somewhat of a fix - which is simply to control positioning with margins. But somehow that is very limiting.
Has anybody ever run across this or know anything about it? I couldn't find anything on google, but I'd like to get this working correctly so that I can control the relative positioning of the item.