Just got onto the wifes Windoze PC and tried this under IE5.5. IE renders the border thin in all cases so I suspect that was the designed response for loose.dtd. The thick border must be just a Gecko thing. Don't you just love CSS :)
Talking of strange behaviour, in my haste to knock out an example I used the English 'grey' for the background colour rather than the 'gray'. My Gecko based browsers where quite happy with this but IE displayed a white background until I 'corrected' the spelling. Its a funny world.
Steve