I have the same problem with the overflow:hidden; obeying all the padding rules, except for the right hand side. This solution works for browsers that support independent opacity.
I just changed my CSS from:
padding: 20px;
overflow: hidden;
to
padding: 20px 0 20px 20px;
border-right: solid 20px rgba(0, 0, 0, 0);
Having container divs works fine, but that effectively doubles the amount of divs on a page, which feels unnecessary.
Unfortunately, in your case this won't work so well, as you need a real border on the div.
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