Very nice, very clean. Love the blue shades. I agree about the div class surrounding the images. I don’t see any imageElement class in your main stylesheet either. Maybe leftover?
Also, looks sweet in all browsers, IE6/7 and FF3 on PC. :)
Conditional stylesheets are not always needed so that doesn’t mean it’s not cross browser compatible. I’m always so happy when I code a new template and it works right off the bat with no conditionals need. Makes me do my little cross-browser-happy-dance. ;)