According to the CSS2 spec, section 14.2.1, background-position specifies the position of a background image relative to the padding edge of a box, and tiling should cover only the content and padding areas of a box. However, according to section 8.5.3, borders are drawn on top of a box's background. This means the background color should be underneath the border, but not the background image. Quoted uri gives example and links to CSS spec. The logo should not be under the red border on that page. (Note: Reported as "Rendering" component bug, is this a "Style System" bug?)

Fixed. Now the background image is positioned relative to the padding area and not the border area. The background color is still drawn over the border, padding, and content areas

My new Evil Test Suite contains a better version of the test page, so updated uri.