You've also got a batch of validation errors - such as your attempt to incorrectly put a link around a heading - put the link INSIDE the <hx> tags and it'll be valid.
In this case, for the one element, the AP is suitable, it just has to go in the right place in the code. I think the main problem is that you've got the image stuck inside the list. Since it's absolutely positioned, it can safely be moved out of there and moved into it's nearest positioned ancestor div.
One other thing - you need to specify a background color for the body of your page. I do not use default desktop colors on my machine, my default bg color is pale pink (easier on the eyes, less eye strain). So, when I view your site in IE, I see your layout surrounded by pale pink ! 
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