I got this crazy idea.. if I cannot properly embed an application I could always run the application in a virtualmachine and embed it! and it works, just tried to embed VirtualPC and VirtualBox, both of them works, with problems
1) virtualbox does not get text from the OSK
2) virtualbox properly resizes the window when minimizing/maximizing (COOL)
3) virtualbox DOES NOT allow to hide toolbars, or it appears so (SUCKS)
but...
4) vitualpc embeds fine with no toolbars but resizes the window only when clicking in it
5) virtualpc does not get text from OSK
right now virtualbox it's usable if you bear the toolbars (or maybe a slight skinning abilities could wrap ip over the CF graphic, but I'm no extert)

both of them need needs work to make it work, so... whan about a plugin? for one of them obviusly
virtualbox is opensource too...
I think it could be a great idea for borderline embedding problem, or even to run your wifi linux wep cracking fancy tool within centrafuse