I find this interesting problem, so I spent some time debugging the design on your page.
Now for me, the text field always stretches exactly to the bottom of the page, and not further, and the page scroll bar does not appear.
Here are the changes (I hope you didn't change your code or style sheets too much when debugging):
1.) - "container" div:
Using bottom: 0 along with position: absolute ensures that the div stretches to the end of the page. Using height: 100% will overflow the div! Using overflow: hidden does not allow displaying the scroll bar of the page.
<div class="container" style="position: absolute; top: 73px; bottom: 0; overflow: hidden; left: 50%; margin-left: -475px;">
2.) - Left panel ("span-12" div):
<div class="span-12" style="float: left; padding-top: 17px; width: 470px">
3.) - Right panel ("span-12 last" div):
You can use the same trick as with the "container", div: absolute positioning and using the properties of the top, right and bottom CSS.
<div class="span-12 last" id="friend_pane" style="position: absolute; top: 0; right: 0; bottom: 0">
4.) - And iframe:
<iframe src="/friend/shell.php" frameBorder="0" allowTransparency="true" style="height: 100%; width: 100%">
EDIT - to center alignment, I added "left: 50%, left-margin: -475px;" in the style of the container div. These tricks belong to @clairesuzy, I myself have not found it.
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