[HELP] Vertical Menu IE 7 Space

[skycms]

Hi all,

i've used the simple vertical menu template to create my side nav, everything looks fine except for ie 7.
i put a red border around the first level ul, and a blue border on the nested ul's

somehow in ie7 theres a white space on top of the nested ul...
im not skilled with css yet maybe its something really basic that i missed, but thanks for helping me.

i've attached images for better understanding

[Dr.CSS]

Most times it's hard to give an answer w/o a link to see it in action, ie7 has a web dev. tool bar you can install to pick out where the problem comes from...

This is a html/css problem so I'm moving it...