Not necessarily better, but yes, there's a different workaround. Just embed the menu <ul> in a <div style="position: relative">.
I recently discovered that if you put the menu in a <div style="position: absolute">, IE will also misalign it—but it appears that if it's inside a table it does the trick :-) So your code becomes:
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td>
<div style="position: relative">
<ul id="trail-menu">
<li>_Bugger</li>
<li>_Misalign-me
<ul>
<li><a href="/test-201">test-201</a></li>
<li><a href="/test-202">test-202</a></li>
<li><a href="/test-203">test-203</a></li>
</ul>
</li>
</ul>
</div>
</td>
</tr>
</table>
and you don't need to set a "margin: 0" for the <body>, even when the DOCTYPE is present.
This should go in the FAQ as many asked it...