Trying to get information on this so I can answer my other question here.
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It takes the width of the parent element and sets the width of the current element to 100% of it.
What you may have run into, however, is the IE box model bug (which is still present in ‘Quirks Mode’).
Specifically, when in quirks mode, IE includes padding within the area defined by ‘width’, while the W3C box model does not – both padding and margin are added onto the width.