Hello David,
I tired setting the silverlight application to be into a div with style="overflow:hidden", using this code:
<div style="height:200px;overflow:hidden;">
<asp:Silverlight Windowless="true" ID="Xaml1" runat="server" Source="~/ClientBin/SilverlightApplication10.xap" MinimumVersion="2.0.31005.0" Width="100%" Height="100%" /></div>
and loaded the Html Placeholder in a Silverlight application. Everything seems to work fine.
Can you send us a project where this problem is reproducible?
Greetings,
Valentin.Stoychev
the Telerik team