In IE8, the Microsoft introduced a new mode called compatibility mode which would render the page like IE7.
You can see this button next to address bar in stackoverf
I was having an issue with compatibility view, and it turned out some of my PHP files were being saved in UTF-8 character encoding, which I guess was confusing IE. The majority of the site files were saved in Codepage 1252.
Now, I set all the files to save as "Western European (Windows) - Codepage 1252" and my display issues went away.
The lesson here is, don't mix your character encodings.