Iframe problem in IE

Have created a site that uses Iframes and loads html files into a specific area.
Does anybody know first of all how to let the height of the loaded html file determine the height of the inline frame(iframe) tried auto but its not that simple.

secondly in IE there is a weird frame border around the area and the inline html is off centre.
Is this a regular problem or have i created it myself?

here a link anyway.
Also the header buttons are a bit off but that should be a relativly easy fix.

cheers

http://www.brendanmeade.co.nz/maggot/portfolio.php