The position of the toggle moves when a custom control is placed on the page. You can see an example of this on Lussumo's vanilla search page. Happens in all browsers that I can test with.
Fix has something to do with changing the positioning of the toggle's container, will see what I can find out.
Actually, it looks like the LussumoBanner is the cause.
At the bottom of its style.css, there is a SearchSwitch declaration that repositions the link. Remove that and the switch moves to its normal position in IE6, IE7, FF2, and O9.
The fact this is even defined in the extension makes me suspect a bug in some other browser.