The entire page is an iframe onto another website (in this case, jquery.com just for demo purposes). I have an overlay "Hello World", and if you click on the X it minimizes it (click again it will open it).
It all works fine on IE8, Firefox, Chrome, etc...
However in IE7 it extends the white background to the entire width (see screenshot). I believe it's something to do with the shrink-to-fit or shrink-wrapping.