Hi,
Here are a couple screenshots showing the web object in Captivate 7 and also the output on an iPad 2. The grey borders also show up when "Scrolling" is selected in the web object properties. The borders always appear no matter what website is called within the web object, or, whatever size I make the web object itself. By the way, the borders are the same dimension as I specified for the web object size (550x400 in this case), although the website shows up smaller than that.
Thanks,
Steve