Can someone tell me what I’m doing wrong here? The inner class ‘tab’ is supposed to have a negative top margin but when the -ms-filter:Alpha(opacity=40); gets applied, the container seems to have a overflow:hidden forced.
Remember this is only happening in IE8. Here is the fiddle:
Please let me know if there is more information I can provide, and thank you in advance.
UPDATE this is a screenshot using IE8 developer tools, I’ve unchecked as many options as possible to try to figure out what is causing the opacity problem (keep in mind, -ms-filter:... does not show in the IE8 CSS developer list; but it is applied).

got rid of the z-index in the fiddle.. that z-index confuses IE8, and it believes that you don’t want overflow when you have it.. That is IE for you…
http://jsfiddle.net/ANh4k/40/