translator gadget

I have this translator gadget which is inside an iframe.

<iframe allowtransparency="true" align="top" scrolling="no" width="256" height="135" frameborder="0" src="http://cdn.labpixies.com/campaigns/babylon/babylon.html">
</iframe>

I need the iframe, but it doesn't function the way it does if only the url is used:

http://cdn.labpixies.com/campaigns/babylon/babylon.html

You can see that using the url, a word translation pops up in a box (which is what I require).

But from an iframe the popup box is empty and the default browser opens in a new window.

Is there a way to use the iframe but retain the functionality of the url?

Or perhaps it's something beyond our control?

Thanks.

It seems to have something to do with IE(8).

The gadget within the iframe works nicely in a popup in Chrome for example.

What is IE8 doing? Is it a setting? I've defaulted all the settings.