It fails for me in your example.  I have tried it in IE7 and Firefox and the same thing occurs in both.  Below is an screenshot illustrating the problem.  My mouse (which is not shown) was in the middle of the CE.  When I right clicked, the menu appeared far below my mouse.  You have to scroll down inside the window that includes CE, and then right click inside the CE text area.  To clarify, you are following these steps and not experiencing the problem?