List images not displaying right with IE7

I have tried many cobinations of padding and margins and cannot get the list to view right in IE7, the bullets seem intent on crunching up next to the list words. Here is the CSS

ol.bullets li
{list-style-image: url('../images/diamond.gif');
list-style-position: inside;
background-position: left center;
padding: 3px 0 0 17px;
font-size: 0.88em;
margin-left: 3px;}

Can anyone help me to get the bullets to look right in IE7 if you need a link www.bytesizeoffice .co.uk /bytesize-website/pc-links.html without spaces.

Hello quartzy,
Try it like this instead, see if it helps - http://nopeople.com/CSS/li_image/index.html

thanks for your post but that is not what I want, it is for the vertical list of links that is not working correctly.
I found this: http://css.maxdesign.com.au/listutorial/introduction.htm which works with a little tweeking