CKEditor IE7+IE8 Small Clickable Area

I've tested this on two computers in both IE7 and IE8 and I've had a friend test and we're having the same problem. For some reason the clickable area is small in both browsers, as if the height of the inner IFRAME body isn't growing to the height of the IFRAME. It works as expected in Firefox.

I don't know if it's a bug or working as intended, so I figured I'd ask here. Follow the below steps to recreate the issue:

1. Go to http://nightly.ckeditor.com/4169/_sampl ... class.html (the nightly build, but also works in the released version)
2. Click anywhere in the empty space as long as it's away from the default text.

You can't select the editor area to add or edit text unless you click on a line that already has text. If the text editor starts out blank, it's very annoying since you can't just click anywhere in the editor except on the first text line when you want to begin typing. It happens on both the regular skin and V2, so I don't know what the problem is. It works fine in FCKEditor. Any thoughts?