> I tried throwing the baby out with the bath water

Poor baby! How could you throw him out?

> I'm missing something really obvious, right. But what?

Did you try using padding?

#external { padding-top:1em; }

Also, I recommend putting the external links in a second UL, since
using CSS to differentiate them from the internal links only helps
visual users. You could do:

<ul>
<li>one</li>
<li>two</li>
</ul>
<p id="ext">External links:</p>
<ul id="external">
<li>one external</li>
<li>two external</li>
</ul>

#ext { visibility:hidden; } /* or whatever to hide visually but not
from other agents */

#external { padding-top:1em; }

--
--
C Montoya
rdpdesign.com ... liquid.rdpdesign.com ... montoya.rdpdesign.com
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