i've found if the li doesn't have a background it does what you are describing in IE, try adding background even if it has to be a transparent gif (gif vs png to avoid IE6 png issues)

i'm sure others may have solutions but has worked for me in past

neonwiredpixels wrote:
In ie6 and 7 only i have issues with the menus closing while the mouse
is over them at certain points as if there is a gap in between the
list items. This makes using the menu impossible as they almost
immediately close. Gaps in vertical lists is a known issue with ie,
does anyone know is this is the cause and how to go about fixing this?

  

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