I don't think that's the issue here. IE7 Displays the stake just fine.
The web site doesn't use the same style for the name when you go to the stake page. When you are on the stake page it shows the stake name using the same style as is used for the ward name on the ward page. That style doesn't use the line-height attribute so it doesn't have the problem.
Here a sample of what I get on my computer side-by-side with a sample submitted previously.
The second sample came from FF running under Linux. Linux does not have the same font selection as windows so FF uses different fonts and different font sizes.
Here's what that page looks like under IE and FF on my Windows machine:
The Stake name under Windows is the same size in both IE and FF but the text is squished under FF.