Does anybody have any idea what's causing this stupid problem with the sidebar in IE7? hmm...
With these type of problems you have to pretend your a private investigator. You just weed out the others until you find the culprit. In this case it was the margin-left on the inner wrapper causing it. Floating it right fixes the problem.
margin-left : 158px;
width : 781px;
height : 1000px;