I'm not sure how to resolve this, but check out what's happening with the bullets and lines on the lists on this page:
I did some customization of the "li", creating some li ul settings for the main content window, and found that it was a tad diifficult to just affect the content area. However I did finally get content, sidebar and footer lis all working they way I want...I just can't, though, figure out why the bullets are showing up to the left of the image, within the padding, and why the lines are continuing all the way under images. This was the cast, with lines going into the margin and padding areas, even before I did any customization. I can't think of how to fix this....I don't even know what part of the css needs to be fixed, that for the images, or the lists.