
When an absolutely positioned layer (div) is overlaid with a dropdown or some ActiveX component, the Z-index style sheet property does not work and the layer shows under such objects.
Reference: http://www.codeproject.com/KB/HTML/dropdown_div.aspx
Alexander Kleshchevnikov offers 3 great methods in his writeup to solve this problem. I've only tried out Method 2 and it works.
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