It's quirks mode behavior that doesn't follow the standard (and is just for 
legacy compatibility).  You can add <!doctype html> to the top of the test case 
to see the correct behavior according to the standards, which is that 
percentage heights resolve to auto if they are computed relative to an auto 
height containing block.

dave

On Jun 29, 2010, at 9:29 AM, Fady Samuel wrote:

>   <div id="div1" style="background-color: red; height:100%;">
>       <div id="div2" style="background-color: blue;">
>         <div id="div3" style="background-color: green; height:100%"></div>
>       </div>
>   </div>

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