Solution (Clean Markup Solution)
                Date of the Solution
                Tue Aug 18 21:17:26 2009
                Fixed Versions
                All of the affected
                Description
                
Fixed demo is available on a separate page
    - HTML Code:
- <div>
    Here is a <div> having float: left and clear: left. As expected,
    it takes, it occupies as much width it requires from the body's content
    area.
</div>
<span class="ie_fix"></span>
<div>
    This is the same type of <div>: a left-floated <div> with
    clear: left. This <div> should use, should take, should occupy
    the whole content area of the body node (expected results). However, in
    Internet Explorer 7, this left-floated <div> with clear: left only
    takes, only occupies a very narrow chunk of the body's content area
    (actual results). More text filling. More text filling. More text
    filling. More text filling. More text filling.
</div>
<span class="ie_fix"></span>
<div>
    Here, a third <div> having float: left and clear: left. Change
    your browser window viewport's width.
</div>
<ul>
    <li>
        <div>Here is a <div> having float: left and clear: left. As expected,
        it takes, it occupies as much width it requires from the body's content
        area.</div>
    </li>
    <li>
        <div>This is the same type of <div>: a left-floated <div> with
        clear: left. This <div> should use, should take, should occupy
        the whole content area of the body node (expected results). However, in
        Internet Explorer 7, this left-floated <div> with clear: left only
        takes, only occupies a very narrow chunk of the body's content area
        (actual results). More text filling. More text filling. More text
        filling. More text filling. More text filling.</div>
    </li>
    <li>
        <div>Here, a third <div> having float: left and clear: left. Change
        your browser window viewport's width.</div>
    </li>
</ul>
- CSS Code:
- div {
    background-color: #ddd;
    border: 1px solid green;
    clear: left;
    color: black;
    float: left;
}
.ie_fix { display: inline-block; }
.ie_fix { display: block; }
Let's see what I am doing here. In the ' element"><div> part of the demo, I am inserting an extra ' element"><span> element between each ' element"><div> and giving that ' element"><span> "layout" (with {display: inline-block;}) as well as setting its display to value block.
Since we cannot insert that ' element"><span> element between our ' element"><li> elements; what I am doing in the ' element"><ul> part of the demo is wrapping the contents of each ' element"><li> in a separate ' element"><div> and floating that ' element"><div> instead (note that I've removed the float off the ' element"><li>s).
Even though this solution is not perfect, as the fixed shrink-wrap would not completely interract with surrounding elements the same way as the original demo would in sane browsers, this method of fixing the bug may be your lucky ticket.