Yeah, so far as I know they've made IE8 at least more <object> compliant (won't go so far as to say fully), but IE7 and earlier is still a major problem. I was hoping someone knew of a work-around.
On the height issue, I believe it's because that snippet needs to be inside a <div> element with dimensions specified, so the % has something to work with. For example:
<div class="object_window" style="left: 22px; top: 105px; width: 930px; height: 650px;">
<object type="text/html" data="http://www.google.com"
style="height:100%; width:100%;">
<p>Alternate text.</p>
</object>
</div>
Your page would have to be large enough to fit the size of the <div>.
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