Finally I found a solution by adding breaklines before and after the logo in _main.php file, like this:

<div id="logo">
<br /><a href="<?php bloginfo('url'); ?>"><img src="img/b2evo_sm.gif" border="0" alt="b2evo logo" /></a><?php // Visit http://googlefont.com/ to make your own logo ?><br /><br />
</div>

See my blog: http://www.panoramearth.com/

I don't think it is an elegant solution, I'm not a php/css expert :lol:

I think it might have a CSS issue.

In the CSS there is a class .blogList li while in the XHTML there is a ul id="blogList"

try playing around with your CSS named stylesheet.css
EG add #blogList ul {display:inline;} or something similar.

I don't have IE7 and I'm on a Mac but I'm sure the bloglist is the issue

Finally I found the problem. In the CSS there is this above:

body { /* This one if for IE */
margin-top: 5px;
}
html>body { /* This one is for Firefox */
margin-top: -10px;
}

IE7 takes in account the supposedly code for Firefox. I delete this code and IE7 (as well as Firefox!) displays now a good 5 px margin. Maybe the author of the skin (Danny) could fix it.