Brian,
>It's only for display.
So you could use a label instead of an edit or textbox and set it to autosize = .t. and wordwrap = .t. and it will resize the way you want it to.
If your users must be able to cut/copy text or you need to have databinding, you could additionally put an invisible label in the grid cell, which is filled with the same content as the textbox. Then you could get the height setting from the label and apply it to your textbox. Maybe you'll have to add some extra pixels to the height, since the textbox has an inner and outer border. And ... use a textbox, not an editbox. This way you get rid of the scrollbars (as Chris already suggested).
Just an idea ... not tested.
HTH,
Armin