Hi Jai,
Please, make sure that you are using the latest version of RadEditor for ASP.NET AJAX (Telerik.Web.UI.dll v2011.1.519) in your project. Remove your page stylesheet and themes and test again the editor.
If you would like you can get reference to the content area using JavaScript
var content area = editor.get_contentArea();
and apply a new height using
editor.get_contentArea().style.height = "200px";
Kind regards,
Rumen
the Telerik team
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