Hello Jeff,
Could you tell me which browser is having this issue? I am asking this, because the resize handles for an image in an editable iframe are a browser feature we cannot control, and not all browsers offer it. As far as I can see, this seems to be IE's resize handles, and this would be a behavior of the browser. You can reproduce this with the simple editable iframe that I attached and with the following HTML:
I was not able to reproduce a problem in Firefox (that being the other browser that offers images resizing OOB in its rich text editing engine) and with Chrome, where we have implemented our own image resizing.
Regards,
Marin Bratanov
Telerik
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