Hi Joe,
I could reproduce this, but only in IE7, which makes me think that this has to do with inline windows setting in your app.
Can you verify that you were using IE with non-inline windows ?
Also, it would be neat if you could verify that if you change your app to using inline windows and you try again in IE, if it is still showing the dialog windows to the far left ?
Anyway, the issue I opened you can track here.
Palli