No DTD on your document. That makes IE go in quirks mode. Add this at the top of your html:
and make sure these are always the first lines in your html.
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
Also, you have this as IE interpreted code:
where red means wrong ; ),
<img width="250" height="1" src="http://www.sitepoint.com/forums/images/image2.jpg"/>
even though your mark up is missing height value:
<img src="images/image1.jpg" height="" width="250"/>
As maya said, put proper width AND height values on your images, or don't put any at all.