This should be below the cats, not over them.

The stylesheet is:

    HTML, BODY { margin: 0; padding: 0; border: none; }
    BODY       { background: white url(http://www.hixie.ch/resources/images/meowmeow.gif) repeat-x;       
                 color: black; }
    DIV        { margin-top: 70px; font: 700 medium "Verdana", sans-serif; 
                 color: yellow; background: navy; }
    P          { margin: 0 1em 1em 1em; }

During the initial flow, the margin-top of the first DIV is not being applied.

The margin-top of this DIV, on the other hand (the second one), is being applied.

Bugzilla: Bug 1583, and Bug 3543 (analogous problem for margin-bottom).

See also: the bottom of the margin-bottom test.