Sean, Thanks! I was able to get the background color to work correctly by floating the ul left.
Andy, I've created an updated patch that fixes the resizing issue for "Site Content", "Files & Images", "Newsletters", and "Security" (those are the only sections that I have on my install).
During my testing, this new patch worked flawlessly in Firefox 2, IE 6, and IE 7 for each of the sections.
Patch (not indented for clarity of seeing what I changed):
Patch with indentation adjusted:
Let me know if you find any issues. I'll be busy with my family reunion starting tomorrow so I may not be able to respond until June 5th or 6th. ;)