As you can see, the approach I use now depends on the width and height of #innerDiv. If the width/height changes, I will have to modify the margin-top and margin-left values. Is there any generic solution that I can use to center the #innerDiv independently of its size?
I figured out that using margin: auto can horizontally align the #innerDiv to the middle. But what about vertical alignment?
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tl;dr
Vertical align middle works, but you will have to use table-cell on your parent element and inline-block on the child.
This solution is not going to work in IE6 & 7. Yours is the safer way to go for those. But since you tagged your question with CSS3 and HTML5 I was thinking that you don’t mind using a modern solution.
The classic solution (table layout)
This was my original answer. It still works fine and is the solution with the widest support. Table-layout will impact your rendering performance so I would suggest that you use one of the more modern solutions.