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Have you tried refreshing your screen again after changing the height of PB?
And even if we get rid of the scrollbar that space won't be used unledd you set PB to more pixels or auto height (I don't rememer if PB has auto height, I know iLauncher does).
This is weird because I've used PB with hidelogo with no issues.
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Samsung Epic 4G - LegendaryROM / Samurai kernel
ViewSonic gTablet - Flashback Honeycomb Alpha 10.1
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