CSS Overflow - Not working as expected

Question

http://jsfiddle.net/bSnaG/

In my mind the above example should look like a grey box with #x not going past the edge and #y poking out the b

Answer 1

I think the problem is your height: 100px in the outer div. If you remove this height attribute, do you get the result you're looking for?

Otherwise, I think batwad's probably knocked the nail on the head using three divs.