Inline lists question?

Giganews Newsgroups
Subject: Inline lists question?
Posted by:  emailscot…
Date: 19 Dec 2006

In IE 7 both the top and bottom ul borders are cover by the li border
but in FireFox only the top ul border is covered by the li border.

Which behavor is correct?

ul {
  margin: 0;
  padding: 0;
  list-style-type: none;
  border: 1px solid black;

li {
  display: inline;
  vertical-align: bottom;
  border: 1px solid red;

<ul><li>Item #1</li><li>Item #2</li><li>Item #3</li><li>Item

Also adding line breaks and properly formatting the ul creates extra
space between inline li elements in FireFox, I assume this is a bug?