One month? That's nothing. The embedded TV window has been broken in one way or another since the start of the OS X port (thats late 2004). I don't use that feature. Note that assigning it to someone can often mean it is ignored for longer because other devs think "OK, Nigel is dealing with that one!"
Anyway, in trunk, the embedded window scales OK if Live TV is configured to start in the guide, but the guide is never displayed (probably because the clipping region is the size of the entire window?). After exiting the guide, the small embedded window area remains. If normal LiveTV is started, and the EPG is enabled, the window never scales down, and then the TV image stays in the window (i.e. the menu is never displayed after exiting TV). I will examine fixes when I have time (this is a busy few months for me)
