I got it working in firefox and almost in IE/Win (height is way bigger than it's supposed to be in IE) by changing the "li a" in Nick's example to:

li a {
    background: #eee;
    display: inline-block ;
    /*height: 50px;*/
    line-height: 50px;
    font-size: 14px;
    padding: 17px 20px;
}

Now, keep in mind as soon as someone resizes the text, it won't work anymore. So I'd keep looking, even if you fix it in IE. But maybe it's a step in the right direction? I stopped trying to make stuff work in IE when it started to give me ulcers and gray hairs (and I'm only 21).  Good luck.

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