So the page looks the same to you in IE and FF now that the XML declaration is removed? The search box is hugging the far right corner of the gradient bar it's sitting in? Are the categories in the tabbed box doing the same?
I'm looking at it in IE7 and 8 (after clearing cache) and it's still doing the same thing.
When I do this it causes a weird effect when the dropdown feature of the top menu is enabled. I'll leave it so you can see. Hover over 'Community'.
This top menu is somewhat of a bear to me. I'd love to have the links ride the bottom of the top blue bar and have the dropdown right beneath them like you'd expect to see but there is some rollover effect that originally came with the template that I've only monkeyed with a little and can't get the desired effects.
Thanks for taking a look