Thierry Koblentz wrote:

"height:1%" or "height:0" or whatever "height" you set gives layout to an
element, which is not the case with "display:inline".
Making sure an element "hasLayout" is a big tool in the box when it comes to
fix IE bugs.

Just FYI, over on CSS-D there was a thread today about a web chat with the MS IE7 developers, in which hasLayout was mentioned and I thought this specific point was quite important:

IE7 will respect height: 1%, which if not filtered away from it could break many layouts. They are retaining hasLayout as an internal property and recommend using zoom: 100% for inducing hasLayout as a replacement technique for height: 1%.

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