IE7 CSS - if comment blues

I’m having trouble getting my CSS to work correctly in IE7. I’m using CSS to stretch an image within a div to create a scaling gradient background. The height of the box will be determined by its contents. It works fine in FF, but IE is choking (what’s new, eh?)

I tried an if IE 7 statement as a workaround, but the effects are limited.

Can someone here take a look for me? I’ve wasted most of my morning fooling with it. :hurt:

I’ve attached a zip file with the html and gradient .gif.

Thanks y’all.