I have a much easier answer - took me hours to find the solution. After setting the list box rectangle add the code which sets list box's view rectangle to the same value as the size. Here is my code from SizeChanged function of the container class:
Originally Posted by Jeepy
Worked like a dream for me.
EXPORT_C void CSettingsContainer::SizeChanged()
//ipCurrentControl is of type CCoeControl and points to currently visible control
CListBoxView* pView = ipListBox->View();