If I get the offsetLeft and offsetTop in IE7 they start at 2pixels, in Firefox they correctly start at 0 pixels:

<script>

jQuery(document).ready(function(){

$("#special").mousemove(function(e){

var x = e.pageX - this.offsetLeft;

var y = e.pageY - this.offsetTop;

$('#status2').html(x +', '+ y);

});

})

</script>

<h2 id="status2">

0, 0

</h2>

<div style="margin-left:100px; width: 100px; height: 100px; background:#ccc;" id="special">

Click me anywhere!

</div>