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Updated jQuery UI 6.x-1.3 to 6.x-1.4 and the scoll bars disappeared in "edit Skin" mode. Pop up winodw was laos minimizes, I had to click & drag to expand the window from the lower right corner. I reverted back to jQuery UI 6.x-1.3 and the isse disappeared. Using Fusion 6.x-1.0 with custom a custom subtheme cloned from Acquia Propser.