firstly, pretty sure a DIV directly inside a TABLE is illegal markup.
don't use illegal markup. browsers will respond differently to it (i've recently had Opera ignore some illegal stuff with IE trying to render it).
tho IE usually deserves it, firstly get the markup correct and then see how IE does. it may be that it has failed to render the DOM how you expect.
(FWIW there is an innerHTML rendering problem i've run up against with IE, http://support.microsoft.com/kb/276228/, but for the SELECT element so i don't think it applies here).