The IE filters completely change the behaviour of an element so you should avoid giving them to IE9 when not needed. They cause all sorts of problems such as you experienced and will kill the corrners when using border-radius and the matrix filter.
Just separate them into conditional comments as follows:
Code:
<!--[if lt IE 9]>
<style type="text/css">
#attachment_29{
filter: progid:DXImageTransform.Microsoft.Matrix(/*IE6–IE9*/
M11=0.9659258262890683, M12=0.25881904510252074, M21=-0.25881904510252074, M22=0.9659258262890683, sizingMethod='auto expand');
}
</style>
<![endif]-->
That avoids the problem altogether and keeps the code clean.
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