I don't know if this is a me problem because I've played with my settings, or if it's an everywhere problem. When I have IE7 set to Medium (on View->Text-Size->Medium), my text is significantly larger than what is displayed in Firefox by default. If I have it set to "Smaller" it maps much closer. I'm wondering if I've changed my IE settings or my firefox settings in the past and that's what is affecting me, or if this is default behavior for these applications. I did check and I have my IE zoom at 100%. You can't really tell from the attachments I guess, but the IE screenie is 132 pixels longer than the firefox one.
I've noticed IE7 vs FF2 font size differences myself, too. Insignificant in some cases and quite annoying in others. Is that screenshot of a website page that is live? If you posted the URL, I would do a quick test and see how my IE behaves to font size changes.
It's just a test page that I didn't want indexed, but what the heck - http://www.stevekallestad.com/portal/portal-slim.php It'll be 410'ed before too long anyways. I appreciate the help.
My eye doesn't see any noticeable difference between FF and IE behaviour when resizing fonts. However, line spacing issue is there inside the middle panel. .