I think the current problem may be in the height specified:
ul#cssmw0 ul.level-1 > li > a {menu.css (line 98)
background-image:url(../cssmw0_images/subnavBg.png);
background-repeat:repeat;
border-top:1px solid #FFFFFF;
color:#221F1F;
display:block;
font-family:Arial,Helvetica,sans-serif;
font-size:13px;
font-style:normal;
font-weight:bold;
height:20px;
line-height:20px;
margin:0;
padding:5px 10px;
text-align:left;
text-decoration:none;
text-transform:lowercase;
width:112px;
}
Try changing the heights from 20 to 30 pixels... I think your lines are larger than the settings and IE is still showing it as 20 pixels.