How to preserve line breaks in <code> block?
Check your doctype is valid and on the first line. Maybe it's slipping into quirks mode?
Are you sure you're not doing something wrong? This code works for me on IE7:
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"
"http://www.w3.org/TR/html4/loose.dtd">
<html>
<head>
<style type="text/css">
code { white-space: pre; }
</style>
</head>
<body>
<code>
function() {
alert('yay');
}
</code>
</body>
</html>