Built my first C5 theme. Used the basics of one from freewebtemplates.com - Cool stuff.

Problem is - the text in the navigation is going downward. I have looked over the CSS and the html and just can't figure out way this is happening.

Here is the CSS for the navigation area:
#nav {

width: 740px;
height:48px;
margin: 0px 0px 0px 20px;
background-image:url(images/nav.jpg);
background-repeat:no-repeat;
display:inline;
float:left;

}
#nav a {
font-size:12px;
font-style:italic;
color:#FFFFFF;
font-family:Georgia, "Times New Roman", Times, serif;
margin: 12px 0px 10px 0px;
padding: 0px 20px 0px 20px;
display:inline;
float:left;
border-right-width: 2px;
border-right-style: inset;
border-right-color: #76644f;
}
#nav a:hover {
color:#862e06;
text-decoration:none;
}


and the HTML

<div id="nav">
<?php
$a = new Area('header nav');
$a->display($c);
?>
</div>


I have attached a picture of it. I also check this in Firefox and IE and get the same thing.

Any ideas..

Thanks in advanced..