I am implementing a design that uses custom styled submit-buttons. They are quite simply light grey buttons with a slightly darker outer border:
input.button
I know I'm almost 2 years late to the game, but I found another solution (at least for IE7).
If you add another input type="submit" to your form before any other submit button in the form the problem will go away. Now you just need to hide this new, black-border-absorbing-button.
This works for me (overflow needs to be "auto"):
Note: I am using an HTML5 doctype ().