The extra padding is a result of loading the FCKEditor CSS. You can edit the .body declaration and remove the padding property.
the css file is fckeditor/editor/css/fck_editorarea.css
Text Formatted Code
body
{
font-family: Arial, Verdana, Sans-Serif;
font-size: 12px;
padding: 5px 5px 5px 5px;
margin: 0px;
border-style: none;
background-color: #ffffff;
}
But in doing so there is no padding inside the editor area. I will see if there is a better resolution.
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