Q:

my div tag is unclickable when there is an IMG tag underneath in ie7 ie8

Let's uncomplicate things
http://jsfiddle.net/Hh7Mn/
<div style="width:100px; height:200px; border:10px solid; cursor:pointer; position:absolute; z-index:99;">dsdsfdsfsdfdsfdsf</div>

<img style="z-index:0;" id="default_image" src="http://www.takeprideinutah.org/wp-content/uploads/2009/04/trees.jpg" alt=""/>

Why is the center of the div unselectable and undetectable in ie?
EDIT:
Sorry the code is now the same on both jsfiddle and stack

A:

change the z-index of the image to -1 and it will work: http://jsfiddle.net/kPtkd/1/

