DUH!!!
More and more I am beginning to wonder when IE is going to catch up...
Because IE is dumb, you need to spell it out as it does not understand inline extended CSS values.
The correct way to do it is:
HTML Code:
<td colspan="7" style="background: #00529b url(http://www.xxxxxxxxxx.com/images/reduce-reuse-recycle_03.jpg);background-position: right; background-repeat: no-repeat;">
Yada yada</td>