After some testing it appears the editor may not like being wrapped within a table. The following code when first entering the page will show the problem we are experiencing. However, if we continue to refresh the page the text boxes will suddenly begin to autoadjust.
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<%@ Register TagPrefix="CE" Namespace="CuteEditor" Assembly="CuteEditor" %>
<html xmlns="http://www.w3.org/1999/xhtml" >
<head runat="server">
<title></title>
</head>
<body>
<form id="form1" runat="server">
<table>
<tr>
<td align="top">
<div style="margin-right: 15px;">
<CE:Editor ID="Editor1" runat="server" />
<table>
<tr>
<td><CE:Editor ID="Editor2" runat="server" /></td>
<td><CE:Editor ID="Editor3" runat="server" /></td>
</tr>
</table>
<CE:Editor ID="Editor4" runat="server" />
<CE:Editor ID="Editor5" runat="server" />
<CE:Editor ID="Editor6" runat="server" />
<CE:Editor ID="Editor7" runat="server" />
<CE:Editor ID="Editor8" runat="server" />
<CE:Editor ID="Editor9" runat="server" />
<CE:Editor ID="Editor10" runat="server" />
</div></td>
</tr>
</table>
<asp:Button ID="btnDisplay" runat="server" Text="Display"
onclick="btnDisplay_Click" />
<asp:Button ID="btnEdit" runat="server" Text="Edit" onclick="btnEdit_Click" />
</form>
</body>
</html>