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I just noticed this at the bottom of this question on SU:
EDIT Can anyone with Chrome 3 take a look and tell us if it's wrong there too?
That's actually the way the browser renders rounded corners. It can be fixed by using a background image instead of border-radius, but it will most likely be "fixed" in Chrome sooner or later.
In Opera 9.61, the tags look like this:
The border looks fine in other contexts (not at the end of the line in the header at the bottom of the page). So this is a bug in Chrome - likely miscalculating the clipping region.
Edit: Just checked this in the latest Chromium nightly - it's even worse! Ha!