problem with vertical text align

I am trying to make a CSS navigation, I have managed to get it the way I want except for one thing, I cannot get the text to be vertically aligned, if i use padding in IE 7 it works fine , but in Firefox it sticks a bit extra background image on the bottom, I have tried to use the vertical-align but it does not work, here is the code I am using:

HTML Code:

<div id="Navigation">

<ul>
<li>Home</li>
<li>Forums</li>
<li>DKP</li>
</ul>

</div>

CSS code:

#Navigation {
border-top: 1px solid #FFFFFF;
width: 100%;
height: 40px;
background: url(Nav_Main_Background.bmp);
padding: 0px;
margin: 0px;
}

#Navigation UL {
padding: 0px;
height: 39px;
margin: 0px;
}

#Navigation LI {
padding-left: 30px;
padding-right: 30px;
padding-top: 10px;
background: url(Nav_Background.bmp) right 0%;
height: 29px;
color: #FFFFFF;
float: left;
list-style-type: none;
margin: 0px;

}

Please help me somebody.

Start by making the div position:relative and the content position:absolute

vertical-align applis to two cases:
1. aligning relative to the text baseline within an inline element (I think this is what you were trying to describe above, but as block level elements don't go inside inline elements your description really doesn't make sense).
2. aligning relative to the table row baseline within table cells.

The second use may be of some help to you: apply the vertical-align property to the td not to the contained spans. Failing that apply padding and margin to achieve the layout you want.

Or, considering that you've decided that this form is sufficiently table-like to be a table, why not use a nested table for the nested options?

Please see this link here about Css vertical-align

I put a overflow: hidden; in the UL and included the padding so when the background overflowed in FF it was hidden so this way I have solved the problem. Thanks anyways