This is a sample of a div with rounded corners. The size is specified in an inner div. IE also requires the width to be specified in the outer div.
In this case we added the padding and size to an inner div. We also specified only the tl and bl (top left and bottom left) corners be rounded. The borders and shading are a bit off in IE.
This is a sample of what happens when you add padding to the outer div (see the corners and borders do not extend to the edges of the shaded area). To avoid this, nest an inner div in the div you are applying the rounded corners to and add any padding to that div.