Hi Stephen,
Here [1] is an explanation of why the padding on your list items is
operating in a slightly odd way. When you change the <li> or the <a> within
the <li> to "display: block" and then float it, your problems should
disappear.

[1] http://www.maxdesign.com.au/presentation/inline/

Thanks Russ, I was able to use the basis of that to sort things out. I do have one problem however. The surrounding div of the navigation links (with a background colour) is not stretching around the floated link elements, so my nice visual effect of the background colour (which also has a bottom border another colour) is not being seen. Any suggestions for the best way to do that?

I found one solution which uses a hr element after the links, but I'm not convinced by it.

Thanks,
Stephen


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