Still present in 8.04 final release. There hasn't been any activity
upstream wrt this bug  since February of 2008. While it may have low
importance, it is a rather annoying UI bug if you're used to this
feature working normally and use it frequently. Here's hoping there's
someone who knows the code and finds the behaviour annoying enough to
fix it soon.

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Gutsy: expand window to full height now goes to far in GNOME
https://bugs.launchpad.net/bugs/133541
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