Internet Explorer 8 and broken menus in CRM 4.0

** Please note, this issue is fixed un Update Rollup 9**

I noticed this one ages ago, but I've never really taken the time to sit down and work out what was going on.

Ever since the release of IE 8, I've noticed that the menus seem to overlap in very odd ways. In certain circumstances you even get pop-out menus completely covering the menus underneath them like the image on the side of the page.

Now this is obviously less than idea. Functionality it doesnt make a big difference, but aesthetically it can be very annoying to users... and annoyed users are never fun to deal with! ;)

So I noticed that this was happening predominantly when the CRM server was in the local client's Trusted Sites internet security zone. So after a bit of trial and error I managed to isolate the specific setting causing my headaches... There is a setting called 'Allow script initiated windows without size or position constraints'. This is set to Disable by default in the Trusted Sites security zone. Setting it to Enable solves the issue: