Found a work around. I needed to modify the include_CuteEditor.asp file to add the following on line 2
< script language='javascript' >
function OnResize(){}
< /script >
and on line 604 to add ;OnResize() to the two onclick events for two images + and -
I do not recommend anyone else attempt this, but suggest that this or something like this be added to the application. After the editor has been loaded I redefine then OnResize javascript function to call my iframe resize function.