I just duplicated your post with the Ipod drawn image ( the only image that was cut in half) and it rendered fine in IE7 RC1 Firefox 2 and Opera 9
I didn't use any CSS formatting or tags other than the p tags for the text block and my blog is a lot "thinner" than your's... Might be a CSS issue that you need to discuss on the IE7 Blog

<img src="http://wow-factor.com/media/users/john/MyNano.gif" alt="iPod Nano drawing by Vincent Navarino" title="" width="261" height="451" align="left" /><p>1. Humming<br />
2. Whistling<br />
3. Didgeridoo<br />
4. Yodeling<br />
5. Listening to the voices in your head</p>
	<p>For every dominant force in the universe there is a small and vocal minority that fancies a rebellion. A small rabid group of fist-raising dimwits that preaches inane and untrue blatherings in an effort to topple the dominant establishment in charge... so that they can become the dominant establishment in charge. Morons. Morons all. Ever since Apple dominated the MP3 playing community, easily and effortlessly with <em>uh... the... uhm... wait... I forgot the name of the... what was it called... oh!</em> the iPod, the world suddenly cried out for Apple to be crushed by someone, ANYONE. </p>
	<p>Why? If it didn't freaking work so well then it wouldn't be the #1 music (and video) player! Why hate the iPod? No one's forcing anyone to buy the suckers. Why hate it? Well, because that's what the rebellion does. Hope for something good and popular to die, then wait for it's replacement and then hate that and hope for it to die... and so on... and so on... and so on. See that's how the rebels will always have a rebellion to belong to; it's like anarchist security. </p>

	<p>Except this time the rebels are going to get exactly what they deserve. See, <a href="http://go.reuters.com/newsArticle.jhtml?type=technologyNews&amp;storyID=12555600&amp;src=rss/technologyNews" target="_blank">Microsoft is going to come out with an MP3 player</a> and that should pretty much put all the rebels accidently in the camp of their ultimate, ultimate enemy. Which should pretty much be the last anyone hears from the rebels as either their hearts explode or Redmond collects their souls for services rendered. Gotta love the irony, kids. Joyous, joyous irony!</p>
	<p>Goodbye rebel scum.
</p>

Nice to know IE7 RC1 won't render correctly :( I hope someone can tell me why.

Try adding a style for img to the storycontent.
just fiddle with it by adding something like
.storycontent img {margin:3px;} or padding etc etc as your normal posted img has no styling at all and may be getting effected by some of the ZOOM code for other images

Thanks John I will try that! Good idea, since it's only in images in the content; much appreciated. Will post tomorrow if it works.

I don't know whether that's the case in your situation, but I just had a page that did the same cutting off of images, and a reply told me that in my case it was a known IE 7 issue regarding italics next to images. If your case involves an image with italics next to it, try taking off the italics.

JB

Sonufa -- it worked, thanks!

Now that's really stupid on IE's part. I won't be editing posts to fix IE's debacle but its good to know in 5-6yrs they'll fix it...

You're quite welcome. Glad it helped someone else. Another little tidbit I found, when an existing site stopped working:

If you have an ASP.NET site and you're using a label to display database-loaded content, with a fixed height to the label, IE6 will extend the label vertically to contain the content when the page is rendered. IE7, however, will scrunch up the content to fit the assigned height, allowing lines to rend over top of each other. Taking off the height setting fixes this.

Yeesh. There is also link related issues to using italics before a link as well that messes the link up. :(