... I have the very same problem but it's not limited to VImeo. When using Chrome the first video in a feature set is about 75% the height it should be but once it moves to the next video it's all fine. I have six feature sets on six different pages with a mix of embedded code sources (Vimeo, YouTube and Fora) and they all do the same thing.
Even without this specific issue, I have the same problem detailed above when I view any of the feature set pages in FIrefox, Opera or IE9.
I have tried numerous solutions involving using inline parameters like 'height', 'vspace', 'marginheight', 'frameborder' etc. and have tried all of them using inline style as well with no luck at all. I'm using <iframe>.
P.S. I'm working on a locally installed web server and database.