Can someone please explain why IE7 insists on putting a space between the table and the ul in this example? It doesn't seem to happen in IE8 or FF.
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html>
<body>
    <ul style="background-color: Blue;">
        <li>
            <table cellpadding="0" cellspacing="0" border="0" width="100%" style="background-color: Red">
                <tr>
                    <td>
                        <img style="display: block" src="http://www.google.com/intl/en_ALL/images/logo.gif"
                            height="25" border="0" width="150" />
                    </td>
                </tr>
            </table>
            <ul style="background-color: Green">
                <li>One</li>
                <li>Two</li>
            </ul>
        </li>
    </ul>
</body>
</html>