Your beginning and end tags need to be on the same line if you dont want white space. IE8 appends an "Empty Text Node" in the source code if it detects line breaks that you use in your code, meaning when you use a plain text editor and try to keep your code clean and separate lines, it thinks there's an empty text line there. I bitched and bitched about it till I decided to tinker around with it, put ALL my div contents on one line, and it worked like a breeze.
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