You can really simplify that like this:
HTML
<ul class="breadcrumbs">
<li><a href="#"></a></li>
<li><a href="#">Email Templates</a></li>
</ul>
CSS
.breadcrumbs {
border: none;
background-color: #D7D7D7;
padding: 0 0 0 10px;
margin: 0 0 5px 0;
display:block;
}
.breadcrumbs > li{
display:inline;
padding: 0px 40px;
height:40px;
line-height:25px;
cursor:pointer;
}
.breadcrumbs > li:first-child{
background: transparent url("http://compassionunited.com/wp-content/themes/ApplicationPro/images/home_icon.png") 0 0 no-repeat;
position: absolute;
left: 15px;
right: 10px;
}