Kim, you said,
Would it be possible to "force" the #navcontainer to stretch down to the
#footer without the <p> </p> ? If so how?
No, there's no way to do this reliably. You should forget trying to do it. This is what Mark Stanton was getting at. Remove the background from your #navcontainer and put it in the background of the element behind it.
Here's an article that explains what to do: http://alistapart.com/articles/fauxcolumns/
All the best! -Hugh Todd
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