object Element instead of an iframeBased on the technique from this page, my additions are simply to combine all the various bits into a single element for ease of use.
Firstly, we can combine the classid attribute with the non-IE object:
<object classid="clsid:25336920-03F9-11CF-8FD0-00AA00686F13" type="text/html"
data="object.html" style="width:300px;height:200px;">
<p>Fallback text</p>
</object>
Secondly, we need to eliminate the borders and scrollbars that IE presents:
<!--[if IE]>
<style type="text/css">html, body {border:0;overflow:visible;}</style>
<![endif]-->
Note that unless the external (the one in the "iframe") document is in Quirks mode, a bevelled edge-type border will be rendered in IE7/Win. This is sub-par and will require more investigation.
Also note that I'm using a Reset CSS file on this page, so your mileage (in terms of resetting base browser styles) may vary.
An intranation code example.