I see top/left properties display difference with position absolute and position relative as it should.
When I set margin-top on position:relative it positions correctly according to containing container. BUT when I set margin-top on position:absolute, I think it should be positioned according to BODY element but it is positioned same as position:relative which is relative to containing element (#container). And I have not set any element non-static as well.
Here is code with position:relative
http://jsfiddle.net/uFta4/
And here is with position:absolute
http://jsfiddle.net/uFta4/2/
Please note that #firstDiv is positioned at same location which is relative to #container.
Should it be relative to BODY element?
Its because there is difference between RP and AP elements in a sense that RP elements ‘collapse’ their margins while AP element doesn’t collapse their margin. That’s why you are seeing AP element at same position because its also counting BODY margin you gave in its tag.
To make you understand better I have put couple of codes.
Look at following variations and observe different behavior margin collapsing of RP and AP elements.
RP
I hope now it will be clear to you.