This has some more text in it. This also has a background. This should obscure the second block of text since it has a higher z-index.
This has some text in it. This has some text in it. This has some text in it. This has some text in it. This has some text in it.
This is the second div. You should not be seeing this in front of the grey box. This has some text in it. This has some text in it. This has some text in it. This has some text in it. This has some text in it. This second box should be obscured by the grey box.

This problem exists in both IE6 and IE7. There are two identical DIVs, one after another, which have "position: relative" set. Inside the first one is another DIV with "position: absolute", which means it can be positioned relative to its containing div. It also has "z-index:1000", meaning it should display above any element that is either lacking an explicit z-index value or has a z-index value less than 1000. In most browsers (Firefox 1.5, Safari 1.3, Opera 8.5), this works as expeced. In IE6/IE7, the DIV is still drawn behind the second "base" DIV, which is incorrect.

This bug looks to be finally fixed in IE8 Beta 1

-Ben Hollis (brh.numbera.com)