If I use this code, the image isn\'t clipped by the div\'s rounded corners (resulting in the image\'s square corners covering up the div\'s rounded ones):
I think this problem occurs when the image or the image's parent is position:absolute. This is understandable as setting absolute takes the element out of the flow of the document.
I'm 90% sure I've seen a fix for this, I'll update this post when I do:D