We all know that IE is full of bugs and just plain sucks as a browser… if you didn’t know that you can drop your geek badge off on the way out. So today I ran across the Z-Index bug in IE7.
Sometimes you’ve seen this behavior before:

The fix is to give the parent of the element with a z-index a slightly higher z-index
Resources:
http://brenelz.com/blog/squish-the-internet-explorer-z-index-bug/