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Index: moodle/grade/report/grader/index.php
--- moodle/grade/report/grader/index.php Base (1.65.2.21)
+++ moodle/grade/report/grader/index.php Locally Modified (Based On 1.65.2.21)
@@ -197,8 +197,12 @@
 YAHOO.namespace("graderreport");
 
 function init() {
-    // Adjust height of header c0
-    //"heading_name_row" only exists if static students column is turned on
+    //MDL-21088 IE 7 vertical alignment was fixed thus making this unnecesary.
+    //TODO - remove this once sure the other fix is effective
+    /*if(navigator.appVersion.indexOf("MSIE 7")>0) {
+        // Adjust height of header c0 (firstname/surname cell) in case multiline grade items have pushed down
+        // the right hand table cells. Only a problem in IE7. This JS fixes IE7 but CAUSES alignment problems in other browsers.
+        // "heading_name_row" only exists if static students column is turned on
     var rows = YAHOO.util.Dom.getElementsByClassName('heading_name_row');
     if(rows && rows.length>0)
     {
@@ -212,6 +216,7 @@
             }
         }
     }
+    }*/
 
     // attach event listener to the table for mouseover and mouseout
     var table = document.getElementById('user-grades');