wow interesting problem. I wonder if it has anything to do with the "embed this video" code where it has the size...maybe changing the size of the player in the embed code....

in view_video.tpl

Code:
<input name="video_play" value='{if $embed_type eq "0"}&lt;iframe vspace="0" hspace="0" allowtransparency="true" scrolling="no" marginwidth="0" marginheight="0" frameborder="0" style="border:0px;" width="435" height="470" SRC="{$baseurl}/show.php?id={$video_info.VID}"&gt;&lt;/iframe&gt;{else}
&lt;object width="425" height="350" type="application/x-shockwave-flash" data="{$baseurl}/player/player.swf"&gt;&lt;param name="movie" value="{$baseurl}/player/player.swf"&gt;&lt;param name="flashvars" value="&amp;file={$file}&amp;height=350&amp;image={$baseurl}/thumb/{$video_info.VID}.jpg&amp;width=425&amp;location={$baseurl}/player/player.swf&amp;logo={$baseurl}/templates/images/watermark.gif&amp;link={$watermark_url}&amp;linktarget=_blank"/&gt;&lt;/object&gt;{/if}' size="55" onclick="javascript:document.linkForm.video_play.focus();document.linkForm.video_play.select();" readonly="readOnly" />
maybe change the width and height to the same size as the player as you have it set in admin panel? My player is set for 400 x 325 in the admin panel for example, yet the embed player code above has 425 x 350....maybe making them the same dimensions will fix it...