Bugs involving links styled with display: block happens often in CSS columnar webpage templates and is one reason why amateur web authors resort to display: table-cell, bizarre hacks, ugly and non-forward-compatible hacks or/and even table-based layout design. Firefox 2.x, Opera 9.x, Safari 2, Safari 3.0.3, Konqueror 3.5.x, NS 6.2, NS 7.0, NS 7.1, NS 7.2, Hv3 TKHTML alpha 16, Seamonkey 1.x, Seamonkey 2.x, K-meleon 1.1.2, Epiphany 2.x, Galeon 2.x all pass this test.
This bug has been reported at connect's IE beta feedback as bug 332625.
Update: This bug has been FIXED in Internet Explorer 8 beta 2 (build 6001.18241) released on August 28th 2008. Otherwise, Internet Explorer 8 beta 2 PASSES this specific and particular testcase.