A list item (<li>) is set to display:inline. Padding is assigned but totally ignored. It works fine with a Strict Doctype. Applies to safari 1.3x, Safari 2.03x and Nightly webkit builds. Web Inspector does report the padding correctly.
Created attachment 7920 [details] test case testcase with html 4.01 transitional doctype. XHTML 1.0 trans gives the same result.
This is strange. Not sure why this would be happening.
I think this may be a bug in the line box model quirk that attempts to cull out descenders.
Can't repro nowadays; presumably this got fixed at some point