Created attachment 60027 [details] Demonstration of broken clipping on relatively positioned elements When a parent element has a border-radius and overflow set to hidden, setting position: relative on either that element or its child will break clipping of children to the border radius. Example case attached. In my understanding, all three divs should render as circles.
I will have to look at the spec and the test case more closely, but for what it's worth, if you add in -moz-border-radius, the test draws as all squares in Firefox. And I would also like to note that the test case renders the same with the new path-draing border-radius mechanism and the old arc-based method.
Looks to be a dupe of bug 50072 and there's more activity there.
Bug has more info. *** This bug has been marked as a duplicate of bug 50072 ***