On IE8 with this site CaterMax I am seeing the hover underlines are too close to the text, on other browsers and versions of IE it works fine, what can I do to fix it?
The hover underlines? Could you be more specific? Everything looks the same to me in FF and IE8.
When you hover on links the text underline appears very close to the text link in IE8.
I think that's just how IE8 renders that font that you've uploaded.
You can't change the text-decoration position as that is controlled by the browser and unaffected by line-height. If you use another font it looks ok.