The player is set at widescreen (16:9), we cannot change this, its the most common resolution for this filetype. It cannot be dynamic in size with hfs, not without some way of the file giving the player its aspect, but even on stage6 this doesn't occur, i have studied their code and it seems they have some server side information on the videos which automatically resizes the player. The only way to fix this, is for you to use the same method that can be achieved to fix it for a folder of 4:3 videos, you'll have to figure out the mathematical height or width you need. The aspect is 2.35:1.
It seems you are trying to view an anamorphic cinematic aspect video in the widescreen player, On Disc this is usually fixed by the video having black lines embedded into the frames. But many avi compression programs (autoGK/vdm) etc, will crop out this black area to achieve the smallest video frame possible. Because computer players have the ability to mimick this (i think vlc even has the ability to manually set this aspect)
Now, as for IE not working, i find testing locally IE will not work with it. It will show errors about not being able to connect and stuff. But externally it might work, i dunno i try my best to accompany Internet Explorer by i don't care about it.
An embedded window cannot be resizable, it is only meant as a preview, not as a permanent viewing solution. Just click the file and get the windowed version? its all good there. This is the best solution we have come up with for avi/divx files.
GE and ELEVENNNN the spaces bug isn't the problem here.