Hari,
Although I believe I know what Drew is suggesting (about rendering when the chart is not displayed), and he has good reason to suspect that might be the cause of the problem, one reason to doubt this explanation, along with your evidence to the contrary, is that you say it applies only to IE8, and not Chrome. Also, it sounds like you are saying it happens only with the jQuery UI tab control and not when you set up the display of the chart in separate HTML. It is still possible that the problem is caused by a combination of the use of the jQuery UI tab control with IE8, but there might be some very different explanation.
I think we will need more evidence of what is happening before we can figure out how to fix or workaround the problem. If you are unable to provide a working demonstration of the problem that we can look at and try (and you may have perfectly good reasons for that), you will probably have to work it out mostly on your own, with our groping suggestions for what you might try next, which could take a long time.
One thing I would try is a few more browsers. Firefox and Safari are good candidates. Also, if you can use the IE debugger and stop execution just before the chart is drawn, that should show whether the container div is visible at that time.
dan