Question on the spec re List Backgrounds

Hi, say for example I am implementing a layout engine to render the following XHTML snippet:

<ul style="background: red;">
    <li>Unordered List Item</li>
    <li>Unordered List Item</li>
</ul>

The background of the list item text will obviously be red.  But there will be a left-hand margin and bullet generated before each list item text.  Should the background of this bullet and left-hand margin be red or the background colour of its parent block?

In IE 6 and Opera 6.01 (on Windows) the bullet and margin do not have a red background.  But in Netscape 6.1 (on Windows) the background of the bullet and margin is red.

Who is correct as per the spec?

nik atkinson