Heh...that's a very good question. Possibly something else breaking the code then. Wouldn't know where to start.
Try putting the 1st toolbar in the recycling site and see if it breaks it.
I took the code from my forums, and replace it with the recycling site. It is still all messed up in IE. So not too sure what is wrong.
I switched it back. Perhaps, vbulletin's code has something to it, that makes it appear correctly in IE.