Ian
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The MSDN IE blog team have mentioned that IE8 RC1 is going to be coming soon, and is a later build than the one currently in Windows 7. Unfortunately, you'll need to wait for a later Windows 7 build to see these improvements, or test IE8 RC1 in Vista/XP.
http://blogs.msdn.com/ie/archive/2009/01/21/yes-we-did.aspxThis is because the version of IE8 in Windows 7 Beta is somewhat older than the Internet Explorer 8 Release Candidate (IE8 RC1) that we're about to release for Windows Vista and Windows XP. Internet Explorer 8 RC1 displays whitehouse.gov correctly - without this menu issue, as does most recent internal Win7 build.
Over the past months, our compatibility team has been hard at work, finding and fixing bugs that cause site rendering issues. Due to the different release schedules for Windows 7 Beta and IE8 RC1, some of these bug fixes didn't make it into Windows 7 Beta (aka Build 7000). So, if you want to use the latest version of IE8 – you’ll want to install IE8 RC1 for Windows Vista or Windows XP.