You would need to remove the overflow;hidden or the element can't escape its parent.
border: 1px solid #DDDDDD;
padding: 15px 0;
Be very careful when using height:1% and overflow:hidden as that could cut all your content to 1%. If you are using height:1% as an IE haslayout trigger then its much safe to use zoom:1.0 even if it doesn't validate.