Hi MatthewBe,
I can replicate it using IE7. The trick to replication is - you must not be at the top of the scrollable area for it to happen.
This issue seems to be consistent in all "scrollable DIV." Even the dropdowns from the toolbars incorrectly position when scrollable DIV is not at its original position.
Here're some screenshots related to the issue:
The first image below shows the normal case: We're at the top of the scrollable area (See red circle), and context menu shows up at the correct position as expected.
The second image is where the defect is: When the scrollable area is not at the TOP position (See the red circle), the context menu will show up at some random location. The red cross indicated where I clicked. As you can see, the context menu is completely off.
Hope this helps!
KennyW