OK I solved this (I think)...
The reason I wasn't able to stop the scrolling of the FB app was because if the canvas is fluid, then the content will not have overflow? and not trigger scroll events. It WILL however trigger mousewheel events which are necessary steps in generating the scroll event via the mouse.
I added code to my content div whereby I listen for the mousewheel event. I then cancel that event & stop it from propagating to the iFrame's owner.
<html>
<head>
<script type="text/javascript">
function init ()
{
//window.addEventListener('scroll', listener, false);
}
</script>
</head>
<body onload="init()">
<script type="text/javascript">
function onScrollHandler(event)
{
event.preventDefault();
event.stopPropagation();
//alert("scrolling");
}
</script>
<div id="content" onmousewheel="onScrollHandler(event)" onclick="alert('click')" style="position: absolute; top: 0px; bottom: 0px; left: 0px; right: 0px; background-color:#b0c4de;">
content area
</div>
</body>