Hovering with Internet Explorer 6 or 7 will not apply the rules for cursor on the whole line for items 3 or 4 if item 2 has a negative margin-left.

list floated - IE 6 and 7 will use cursor:default; on items 2, 3 and 4

• item 1
• item 2
• item 3
• item 4

list not floated - IE 7 will use cursor:text; on items 2, 3 and 4

• item 1
• item 2
• item 3
• item 4

Setting hasLayout will fix the issue.