+2  A: 

Use the W3 validator tool to ensure your markup is correct. You pasted a snippet with not even an opening <ul> so I'm hesitant on even trying that out.

Chances are you have invalid HTML and it gets treated as such.

meder
Haha please give me a bit more credit. There is an opening ul tag, that's the just last li in a long list
Jordan Lejuwaan
How am I supposed to know what you have? Do you want me to start assuming things? Not posting the entire code makes me assume, I don't really want to assume you have it because it's possible people make technical errors, therefore I suggest pasting the real code or linking to it.
meder
A: 

It's called normalization. It's an IE7 and IE8 thing that it does with li tags. The only thing that remains in the page is the final /li tag and all others are removed. To be honest the page still renders correctly for me (sometimes) and when you get the innerhtml of anything containing an li tag you see that they are replaced by \n\r characters.

Jesus Ramos
All of the previous li tags in the list render correctly, it's only the last closing tag that is moved
Jordan Lejuwaan
Does the page still show or render correctly visually? I have had this issue before mostly in IE7 and the only way I knew about the issue was because I was using SHDocVw to hook into IE and check for elements on the page and li tags were being moved about.
Jesus Ramos
A: 

W3 helped me to see that IE doesn't like div containers inside ul's. Switched them over to ul's inside ul's and it started working.

Jordan Lejuwaan
Only `li` s can be children of `ul` s. `div` s are fine within lis.
meder