Using ControlPanel and Blockbar in Fancy theme breaks in IE7

I'm not entirely sure that this is a ControlPanel issue (and I have crossposted under the BlockBar project and the Fancy theme project) but I have the following two issues when viewing my site in IE7. Both issues are illustrated on the attached image:

Issue 1
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Expanding the last element in a Blockbar makes the last two ControlPanel images appear below the border assigned to the block

Issue 2
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Expanding anything but the last element in a Blockbar makes the ControlPanel images interfere with any Blockbar elements that would normally be below it

The attached image really demonstrates exactly what I mean.

This issue doesn't appear in any of the Mozilla browsers and I know that it is probably a CSS issue and I would be grateful for any help in solving it.