first one is easy... remove the margin on your containing <li> and add that as padding onto your <a> (20px). Remember the hover effect is only for the <a> and the spacing created by the margin is for the <li>
Your problem on #2 is the same except vertically not horizontal. The padding on the <a> brings your link down but cuts off right when the text is done (this is why your 2 line nav item looks good). The solution here isn't as cut and dry, but this should do the trick:
Code:
#list2 ul li a {
display:block;
height:33px;
}
How i end up with 33px is... the <li> height = 43 - the padding-top of the <a> 10px
-aPeg
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