IE has problems with z-index. Most browsers treat the page as one continuous stacking context, but in IE, positioned elements generate a new stacking context, starting with a z-index value of 0.
As mentioned in this article:
http://www.brenelz.com/blog/2009/02/03/squish-the-internet-explorer-z-index-bug/
try giving the calendar's parent element an even higher z-index.
Jason Rhodes
2009-09-23 17:27:37