The problem is that you are using overflow-y property for one of your elements (surrounding cute editor). Cute Editor is not smart enough to figure out the correct coordinates of where to popup a dropdown element because absolute coordinates are calculated differently when "overflow-y" property is in use - to calculate coordinates correctly - they have to use "scrollTop" in addition to "offsetParent" property.

Your workaround is to put an iframe in place of cuteEditor and place a cute editor inside that iframe - there is more coding involved to accomplish that as well as more javascript hacks.

Hope this helps