Hi,
which browser are you using?
I'm not sure if the "min-height" is implemented well in quicks mode on all browsers
(especially in combination with an embedded object),
but you could use a javascript resize function to force a correct resizing,
have a look at the html source of this example - there I used javascript for resizing,
this works everywhere and this could be easily adjusted:
http://krpano.com/108beta/flash10_example.html
best regards,
Klaus