When I prepare a CDF file to be included into a web page, far too much blank vertical space is left over the pane. Is there a command to reduce that? This is illustrated by the files SimpleDemos.nb and SimpleDemos1.cdf.
You can easily remove all white space around your CDF app. Simplest way - use CDF Web Deployment Wizard available in Mathematica version 8.0.4. It is designed to remove the white space around interactive content and embed it tigtly into a webpage. Follow File » Deploy » Embed in HTML… Here is the result of this workflow applied to the app from your file
The CDF file can be downloaded from here
As you can see there is no horizontal or vertical white space around the app.
I would also recommend controlling the size of embedded CDF with