Well, after some down time (suddenly having to fly off to confront a family health crisis) I had some time to fiddle with this site some more.
I think I got it working in IE finally. Long story short I changed some of thee graphics from PNG files to Gifs, changed some of the CSS, and experimented with the oder of presenting the main jquery script, the PNGfix script, and the Fancybox script. I think its now OK in IE7 and IE6.
Some of the issues were a puzzle. Especially with IE6 (of course): the use of PNG files in the repeating body element were expanding somehow. Removing the javascript fixed that but I needed the effect. Swapping to Gifs took care of that problem. I also had dueling PNG fixes. I am now using just one and got rid of the Fancybox PNG fix. My content container was also moving over to the right in IE6 for some silly reason. In the end I resorted to a one line CSS * hack and that seemed to fix it.
The gallery script works but the drop shadows are real ugly in IE6. I may have to customize the CSS just for IE6 here. But I am in better shape now.
I have learned a ton during this process but have waisted some serious time on this. I wonder how many zillion hours web designers have collectively spent tracking down puzzling Internet Explorer issues?
The other thing I did was mess with the Photoshop nav_sprite file. I dropped the hover text by one pixel in each of the nav links. That combined with the jquery slow motion effect really makes it seem like the button is being pressed. Its subtle but changing the Photoshop file really does make a difference.
There is one Safari issue: using the Fancybox overlay forces an unwanted horizontal scroll bar. Not much I can do about this as it seems like a Fancybox bug. So for now I have the overlay turned off. I would like it turned on though...
overlay Site is here:
http://www.seattlerealestatephotography.com/
Again, thanks to all that helped me along the way!
Max