Originally Posted by liorean
You're missing the definition of "Containing Block". Containing block is not the same as parent. The containing block is the closest positioned ancestor. (I.e. the closest ancestor that has it's position property set to a value other than static.)
The fix for your problem is to add position: relative; to the element you want the absolutely positioned element to be relative to.
Hah, my understanding is way more broken than I thought
but thank you, this should fix me up.