Check your footer CSS... if you have overflow set to anything but auto/scroll, then the DIV won't grow.
If not try using something other than DL/DT since DT's are inline elements, they won't push your div to fit content.*
e.g. just try using a DIV instead, if the footer grows, you have your answer.
(note: I revised order of suggestions)
*(I realize spec-wise, that this Shouldn't be an issue, but there wasn't an indication of which browsers this was occuring in, thus I would not be at all surprised if IE was rendering differently than expected for example)