Weird formatting with CSS and HTML

Answer 1

It's a float problem. Normal elements in the document flow give way to floated elements when the float elements overlap them. You can confirm this by giving #news-item a clear CSS property, and watch the indent disappear.

There is a fix for it, but it's a bit of a kludge. Use these CSS rules:

#news-item {
  clear: both;
  position: relative;
  top: -40px;
}

However, to actually solve the problem, you need to find the offending element.