Willy, thanks for pointing that out. That miraculously made a lot of things look better.
Yuniar, adding the font-size:75% that you suggested now makes IE fit within the form's background, but it shrinks firefox as well and now that looks too tiny. Is there a way I can specify an exact font size rather than using a percentage? Will this make it uniform through both browsers?
Edit>> Nevermind! I set it to "font-size:12px" and that seems to be a happy medium. It's a LITTLE bit too big in IE but it still fits into the form's background box. I'll just do some adjustments to the padding. Thanks a lot guys.