Embedding video in Storyline

This may be a little long-winded so here goes:

In the past, I've embedded Adobe Captivate simulations/demos into Articulate Presenter.  Worked great, recorded at 800x600, no scrollbars were present, was a cinch!

Now, I am using Storyline and am having issues with inserting the Captivate demos/simulations in there and not having issues:

• If I try to insert the demo SWF file into Storyline, it comes up in the window perfectly sized, BUT there is a quality issue whenever a field is being typed in.  Ghost letters appear.  I have played with the publish quality, SWF size, etc in Captivate, and I believe its THEIR issue, not Storylines.
• I have figured out a way around that problem, by inserting the demo/simulation into Storyline as a webobject, just like I used to do in Articulate Presenter, same recording size of 800x600, etc.  BUT, when inserted, its big and has scroll bars, as if I had recorded it at a much higher screen size, which I didn't.

My issue is,  how in the world can I correct this issue?  800x600 is the lowest size I can record at in Captivate, which puts the minimum amount of scroll bars in my player,  there's no way to go lower, so I am thinking its some feature I'm not seeing in Storyline.  Any and all suggestions would be appreciated!  Thanks!