Index: wp-admin/css/nav-menu.dev.css
===================================================================
--- wp-admin/css/nav-menu.dev.css	(revision 14560)
+++ wp-admin/css/nav-menu.dev.css	(working copy)
@@ -37,20 +37,14 @@
 	background: url("../images/menu-bits.gif") no-repeat scroll 0 -110px;
 }
 
-#wpbody {
-	position: relative;
-}
-
 /* Menu Container */
 #menu-management-liquid {
-	float: left;
-	min-width: 100%;
+	float: right;
+	width: 100%;
 }
 #menu-management {
 	position: relative;
-	margin-right: 20px;
 	margin-top: -3px;
-	width: 100%;
 }
 	#menu-management .menu-edit {
 		margin-bottom: 20px;
@@ -169,17 +163,13 @@
 	}
 
 /* Menu Toolbar */
-#menu-management #major-publishing-actions #delete-action {
-	float: right;
-	margin-right: 10px;
-}
-
 #menu-name-label {
 	margin-top: -2px;
 }
 
 #wpbody .open-label {
-	display: inline-block;
+	float: left;
+	text-align:left;
 }
 #wpbody .open-label span {
 	padding-right: 10px;
@@ -223,7 +213,7 @@
 	vertical-align: middle;
 }
 
-.button-controls { margin: 10px 0; }
+.button-controls { display: inline-block; width: 100%}
 .show-all, .hide-all { cursor: pointer; }
 .hide-all { display: none; }
 
@@ -253,24 +243,13 @@
 /* Nav Menu */
 #menu-container .inside { padding-bottom: 10px; }
 
-.menu {
-	padding-top:1em;
-}
-
 #menu-to-edit {
 	padding: 1em 0;
 }
 
-.menu ul { width: 100%; }
-.menu ul.sub-menu {
-}
-.menu li {
-	margin-bottom: 0;
-}
 .menu-item-bar {
 	clear:both;
 	line-height:1.5em;
-	position:relative;
 	margin-top: 13px;
 }
 .menu-item-handle {
@@ -493,8 +472,3 @@
 	background: #21759B;
 	color: #fff;
 }
-
-
-/* Clearfix */
-#nav-menus-frame:after, .menu-item-settings:after, .button-controls:after, #menu-item-url-wrap:after, #menu-item-name-wrap:after { content: "."; display: block; height: 0; clear: both; visibility: hidden; }
-#nav-menus-frame, .menu-item-settings, .button-controls, #menu-item-url-wrap, #menu-item-name-wrap { display: block; }
Index: wp-admin/includes/nav-menu.php
===================================================================
--- wp-admin/includes/nav-menu.php	(revision 14560)
+++ wp-admin/includes/nav-menu.php	(working copy)
@@ -158,7 +158,6 @@
 						<span class="description"><?php _e('The description will be displayed in the menu if the current theme supports it.'); ?></span>
 					</label>
 				</p>
-
 				<div class="menu-item-actions description-wide submitbox">
 					<?php if( 'custom' != $item->type ) : ?>
 						<p class="link-to-original"><?php
@@ -191,6 +190,7 @@
 				<input class="menu-item-data-parent-id" type="hidden" name="menu-item-parent-id[<?php echo $item_id; ?>]" value="<?php echo esc_attr( $item->menu_item_parent ); ?>" />
 				<input class="menu-item-data-position" type="hidden" name="menu-item-position[<?php echo $item_id; ?>]" value="<?php echo esc_attr( $item->menu_order ); ?>" />
 				<input class="menu-item-data-type" type="hidden" name="menu-item-type[<?php echo $item_id; ?>]" value="<?php echo esc_attr( $item->type ); ?>" />
+				<div class="clear"></div>
 			</div><!-- .menu-item-settings-->
 			<ul class="menu-item-transport"></ul>
 		<?php
@@ -431,21 +431,21 @@
 	?>
 	<div class="customlinkdiv">
 
-			<input type="hidden" value="custom" name="menu-item[<?php echo $_nav_menu_placeholder; ?>][menu-item-type]" />
-			<p id="menu-item-url-wrap">
-				<label class="howto" for="custom-menu-item-url">
-					<span><?php _e('URL'); ?></span>
-					<input id="custom-menu-item-url" name="menu-item[<?php echo $_nav_menu_placeholder; ?>][menu-item-url]" type="text" class="code menu-item-textbox" value="http://" />
-				</label>
-			</p>
-
-			<p id="menu-item-name-wrap">
-				<label class="howto" for="custom-menu-item-name">
-					<span><?php _e('Label'); ?></span>
-					<input id="custom-menu-item-name" name="menu-item[<?php echo $_nav_menu_placeholder; ?>][menu-item-title]" type="text" class="regular-text menu-item-textbox input-with-default-title" title="<?php esc_attr_e('Menu Item'); ?>" />
-				</label>
-			</p>
-
+		<input type="hidden" value="custom" name="menu-item[<?php echo $_nav_menu_placeholder; ?>][menu-item-type]" />
+		<p id="menu-item-url-wrap">
+			<label class="howto" for="custom-menu-item-url">
+				<span><?php _e('URL'); ?></span>
+				<input id="custom-menu-item-url" name="menu-item[<?php echo $_nav_menu_placeholder; ?>][menu-item-url]" type="text" class="code menu-item-textbox" value="http://" />
+			</label>
+		</p>
+		<div class="clear"></div>
+		<p id="menu-item-name-wrap">
+			<label class="howto" for="custom-menu-item-name">
+				<span><?php _e('Label'); ?></span>
+				<input id="custom-menu-item-name" name="menu-item[<?php echo $_nav_menu_placeholder; ?>][menu-item-title]" type="text" class="regular-text menu-item-textbox input-with-default-title" title="<?php esc_attr_e('Menu Item'); ?>" />
+			</label>
+		</p>
+		<div class="clear"></div>
 		<p class="button-controls">
 			<span class="list-controls">
 				<a href="#" class="select-all add-home-link"><?php _e('Add Home Link'); ?></a>
@@ -455,7 +455,6 @@
 				<input type="submit" class="button-secondary" value="<?php esc_attr_e('Add to Menu'); ?>" name="add-custom-menu-item" />
 			</span>
 		</p>
-
 		<div class="clear"></div>
 	</div><!-- /.customlinkdiv -->
 	<?php
@@ -625,7 +624,7 @@
 			</div>
 		</div><!-- /.tabs-panel -->
 
-
+		<div class="clear"></div>
 		<p class="button-controls">
 			<span class="list-controls">
 				<a href="<?php
Index: wp-admin/js/nav-menu.dev.js
===================================================================
--- wp-admin/js/nav-menu.dev.js	(revision 14560)
+++ wp-admin/js/nav-menu.dev.js	(working copy)
@@ -853,6 +853,10 @@
 
 	};
 
-	$(document).ready(function(){ wpNavMenu.init(); });
+	$(document).ready(function(){ 
+		if (jQuery.browser.msie && jQuery.browser.version == '7.0') // drag&drop fix for ie7
+			jQuery('.menu li').css('display', 'inline-block');
+		wpNavMenu.init(); 
+	});
 
 })(jQuery);
Index: wp-admin/nav-menus.php
===================================================================
--- wp-admin/nav-menus.php	(revision 14560)
+++ wp-admin/nav-menus.php	(working copy)
@@ -17,7 +17,7 @@
 
 // Permissions Check
 if ( ! current_user_can('switch_themes') )
-	wp_die( __( 'Cheatin&#8217; uh?' ));
+	wp_die( __( 'Cheatin&#8217; uh?' ) );
 
 // Nav Menu CSS
 wp_admin_css( 'nav-menu' );
@@ -53,9 +53,8 @@
 	case 'add-menu-item':
 		if ( current_user_can( 'switch_themes' ) ) {
 			check_admin_referer( 'add-menu_item', 'menu-settings-column-nonce' );
-			if ( isset( $_REQUEST['menu-item'] ) ) {
+			if ( isset( $_REQUEST['menu-item'] ) )
 				wp_save_nav_menu_item( $nav_menu_selected_id, $_REQUEST['menu-item'] );
-			}
 		}
 		break;
 	case 'move-down-menu-item' :
@@ -479,7 +478,6 @@
 								<label class="menu-name-label howto open-label" for="menu-name">
 									<span><?php _e('Menu Name'); ?></span>
 									<input name="menu-name" id="menu-name" type="text" class="menu-name regular-text menu-item-textbox input-with-default-title" title="Enter menu name here." value="<?php echo esc_attr( $nav_menu_selected_title  ); ?>" />
-									<br class="clear" />
 								</label>
 
 								<div class="publishing-action">
@@ -491,7 +489,7 @@
 									<a class="submitdelete deletion menu-delete" href="<?php echo esc_url( wp_nonce_url( admin_url('nav-menus.php?action=delete&amp;menu=' . $nav_menu_selected_id), 'delete-nav_menu-' . $nav_menu_selected_id ) ); ?>"><?php _e('Delete Menu'); ?></a>
 								</div><!--END .delete-action-->
 								<?php endif; ?>
-								<br class="clear" />
+								<div class="clear"></div>
 							</div><!--END .major-publishing-actions-->
 						</div><!--END #submitpost .submitbox-->
 						<?php wp_nonce_field( 'closedpostboxes', 'closedpostboxesnonce', false ); ?>
@@ -520,7 +518,7 @@
 								echo '<p>' . sprintf( __('For more information on this feature, see the <a href="%s">Custom Menus</a> article in the Codex.'), _x('http://codex.wordpress.org/Custom_Menus', 'Custom Menus codex page') ) . '</p>';
 								echo '</div>';
 							endif; ?>
-							<br class="clear" />
+							<div class="clear"></div>
 						</div><!-- /#post-body-content-->
 					</div><!--- /#post-body -->
 				</form><!--/#update-nav-menu-->
@@ -529,6 +527,7 @@
 	</div><!-- /#menu-management-liquid -->
 	</div><!-- /#nav-menus-frame-->
 	<?php endif; // if menus supported in current theme ?>
+	<div class="clear"></div>
 </div><!-- /.wrap-->