IMG will inherit div padding although it has an absolute position with bottom 0

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What steps will reproduce the problem?
When padding-bottom is added to a div using curvycorners and an image within 
this div contains a position: absolute; bottom:0, the image will inherit the 
padding. The image should still honor the bottom:0 position no matter what 
otherwise i can add padding to the image if i need it.

You can test it here: http://jsbin.com/ulohi3/4/

What is the expected output? What do you see instead?
The image should be flush with the curvy border at the bottom in IE like it is 
in FireFox.

What version of the product are you using? On what operating system?
2.1 and also tried in previous versions such as 2.0.4. I tried this on Windows 
XP.

Please provide any additional information below.
Test Case 1: http://jsbin.com/ulohi3/4/

Original issue reported on code.google.com by evan.mo...@gmail.com on 7 Nov 2010 at 2:07