I've done a little more digging.
This screenshot is a page hosted on my Windows XP desktop and viewed in Firefox on the left and IE8 on the right. This shows it is not IIS at fault but its the way IE deals with a page from IIS at a guess as it doesnt do it while running through Visual Studio.
My version of IE is 8.0.6001.18702 if that helps.
This is the sample page for you to try it for yourself and see what can be done.
<div>
<ext:ScriptManager ID="ResourceManager1" runat="server" />
<ext:Panel runat="server" Height="600" Width="900" ID="Panel1">
<Body>
</Body>
</ext:Panel>
<ext:Window ID="wdwNewSealWindow" Height="456" Width="380" ShowOnLoad="true" runat="server" Title="Enter new seal details" Header="true" Closable="false" Resizable="false">
<Body>
<ext:FormPanel runat="server" ButtonAlign="Right" ID="pnlNewSealWindow" >
<Body>
<ext:FormLayout ID="FormLayout1" runat="server">
<ext:Anchor>
<ext:TextField ID="txtPropertySealNumberNEW" runat="server" FieldLabel="Seal Number"
Width="250" AllowBlank="false" MaxLength="20">
</ext:TextField>
</ext:Anchor>
<ext:Anchor>
<ext:TextArea ID="txtDescriptionNEW" runat="server" FieldLabel="Description" Width="250"
Height="75" AllowBlank="true" MaxLength="60">
</ext:TextArea>
</ext:Anchor>
<ext:Anchor>
<ext:TextField ID="txtReceiptNumberNEW" runat="server" FieldLabel="Receipt Number"
Width="250" MaxLength="20" AllowBlank="false">
</ext:TextField>
</ext:Anchor>
<ext:Anchor>
<ext:DateField InvalidText="Please enter date in valid format" AltFormats="dd/MM/yyyy|d/M/yyyy|dd/M/yyyy|d/MM/yyyy|d/M/yy|dd/M/yy"
ID="dteDateNEW" runat="server" FieldLabel="Date" Width="200" AllowBlank="false">
</ext:DateField>
</ext:Anchor>
<ext:Anchor>
<ext:ComboBox ID="cboPropertySourceNEW" runat="server" Width="200"
Mode="Local" SelectOnFocus="true"
FieldLabel="Property Source" EmptyText="[Source...]" LoadingText="Loading....."
TriggerAction="All" AllowBlank="false" TypeAhead="true">
</ext:ComboBox>
</ext:Anchor>
<ext:Anchor>
<ext:ComboBox ID="cboPropertyLocationNEW" runat="server" Width="200" EmptyText="[Location...]"
LoadingText="Loading....." FieldLabel="Property Location"
TriggerAction="All" Mode="Local"
AllowBlank="false" TypeAhead="true">
</ext:ComboBox>
</ext:Anchor>
<ext:Anchor>
<ext:ComboBox ID="cboPropertySubLocationNEW" runat="server" Width="200" EmptyText="[Sub Location...]"
LoadingText="Loading....." FieldLabel="Property Sub Location"
TriggerAction="All" Mode="Local"
AllowBlank="true" TypeAhead="true">
</ext:ComboBox>
</ext:Anchor>
<ext:Anchor>
<ext:Checkbox ID="chkSearchedNEW" runat="server" FieldLabel="Searched" Checked="false">
</ext:Checkbox>
</ext:Anchor>
<ext:Anchor>
<ext:NumberField ID="txtHeightNEW" runat="server" FieldLabel="Height (cm)" Width="125"
AllowDecimals="false" AllowBlank="false" MaxLength="4">
</ext:NumberField>
</ext:Anchor>
<ext:Anchor>
<ext:NumberField ID="txtDepthNEW" runat="server" FieldLabel="Depth (cm)" Width="125"
AllowDecimals="false" AllowBlank="false" MaxLength="4">
</ext:NumberField>
</ext:Anchor>
<ext:Anchor>
<ext:NumberField ID="txtWidthNEW" runat="server" FieldLabel="Width (cm)" Width="125"
AllowDecimals="false" AllowBlank="false" MaxLength="4">
</ext:NumberField>
</ext:Anchor>
<ext:Anchor>
<ext:NumberField ID="txtWeightNEW" runat="server" FieldLabel="Weight (kg)" Width="125"
AllowDecimals="true" AllowBlank="false" MaxLength="9">
</ext:NumberField>
</ext:Anchor>
</ext:FormLayout>
</Body>
<Buttons>
<ext:Button ID="wbCancelNewSeal" runat="server" Text="Cancel" Icon="Cross">
<Listeners>
<Click Handler="#{wdwNewSealWindow}.hide();" />
</Listeners>
</ext:Button>
<ext:Button ID="wbSaveNewSeal" runat="server" Text="Save" Icon="Disk">
</ext:Button>
</Buttons>
</ext:FormPanel>
</Body>
</ext:Window>
</div>