Michael:
Bob's right.. the easiest way is to change the page extension to be .php, then use the native PHP method ( include() ) to bring in the info you want to add.
The extension on the page name really determines what the webserver is going to do with the page when it's requested by the client browser. If the type is '.htm' or '.html', that tells the webserver to 'just return the page, no processing is necessary'. If the type is '.shtm' or '.shtml', the webserver will parse the page looking for Server Side Includes (SSI) variables, substitute for them, then return the page to the browser. If the page type is '.php', the webserver sends the page to the PHP interpreter to process, and returns the result to the browser.
When you use an IFRAME to include a page, the webserver does nothing special, but the browser does the assembly by requesting a different page from that (or a different) webserver. The downside of IFRAMES is what you'd cited.. if the page gotten by the IFRAME is bigger than the space allowed, it's cut off (or creates scroll bars if that parameter is enabled on the IFRAME tag).
In short.. best way is to rename the calling page extension to be .php and use <?php include("pagename.php"); ?> where you want the content to appear in your page.
Ken