CSS container div not getting height

Add the following property:

.c{
    ...
    overflow: hidden;
}

This will force the container to respect the height of all elements within it, regardless of floating elements.
http://jsfiddle.net/gtdfY/3/

UPDATE

Recently, I was working on a project that required this trick, but needed to allow overflow to show, so instead, you can use a pseudo-element to clear your floats, effectively achieving the same effect while allowing overflow on all elements.

.c:after{
    clear: both;
    content: "";
    display: block;
}

http://jsfiddle.net/gtdfY/368/

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