Don't know how the double post happened.
I did some searching and came to this page with suggestions for changing the text editing area:
http://www.mambers.com/mambo-4-5-1-...nymce-content-editor.html
It didn't work for me, but I went to the component that TinyMCE is used in a found the same settings shown in the example on this site. They were in an html file of the component. I reset them and voila! The window now fits within the template area.
Hope this helps.
Now, I still have the problem with the background color staying the same as the template. Is there something more to do than simply set the Template CSS setting to NO?
I will be very happy if I can adjust that.
Thanks.