Dynamic Sidebar CSS

I’m having a problem customizing my dynamic sidebar. I’ve never had this problem before so I’m hoping someone can help me. The first 2 elements on the sidebar are following the stylesheet, but everything that follows is not and I can’t seem to find the reason.

Here is the visual.

Here is the functions.php

<?php
if ( function_exists('register_sidebar') )
register_sidebar(array(
'before_widget' => '<li>',
'after_widget' => '</li>',
'before_title' => '<h2>',
'after_title' => '</h2>',
));
?>

Here is the sidebar.php

[code moderated - please follow the forum guidelines for posting code]

Here is the css:

[dito - please post a link to your site]

Any help is appreciated. thanks