It's because you gave haslayout (width:400px) to the ul and IE7 and under lose their bullets when the ul is in haslayout mode fortunately.
You could wrap a div around the ul and apply a width to that or apply a width to the list elements instead. Or just use margins to set the width of the ul.
IE has a lot of problems with lists and haslayout on the ul and indeed on the list items and bullets disappear and numbers all stay at 1. It's best when yu need markers to avoid haslayout on list items and apply haslayout to a parent div instead where needed.
I notice in that page that you have wrapped p tags around the lists which is invalid.
and why do this?
<p> <strong>The Rawlingson Lane Action</strong> <br />
Just use an appropriate heading tag because that's what it is:)