hmm, sounds familiar ;-( several months back i was investigating something similar. even tho my pc already had ie8, i dumped that and installed ie7 ;-) can you do a full screenshot of what ie8 looks like and load to yr server so that i can have a study.. there may be way out, no promises,, but i think i have workarounds published here and there.. something to do with ie8's unnatural extra padding...

Jeremy, I see you are using my BlackPod theme (actally I saw it earlier as now your site is not responding). I wanted to register there but did not make it before site went down, to see the backend as "not logged in" looks fine in my IE8.

From your photo it seems like (I can almost guarantee it) the previous problem when you have too many plugins enabled ( plus extra links you put yourself in there) and profile,settings and admin links on right side so what happens is that menu bar is just not wide enough That forced me to create BlackPod with "dropdown" Tools menu which made room for all other links.

Try disabling some plugins and test it that way. You are going to have to either download "Dropdown" version (http://juipo.com/downloads/black_pod_freeDropTools_Logo) or remove some extra links you have put in there.

Let me know if disabling some plugins fixes it.

Your site still down????