diff --git a/demo/autoresize.html b/demo/autoresize.html
index 73a87599..ef4cbe04 100644
--- a/demo/autoresize.html
+++ b/demo/autoresize.html
@@ -7,14 +7,13 @@
   <style type="text/css" media="screen">
 
 	.ace_editor {
-		position: relative !important;
 		border: 1px solid lightgray;
 		margin: auto;
 		height: 200px;
 		width: 80%;
 	}
 	.scrollmargin {
-		height: 100px;
+		height: 80px;
         text-align: center;
 	}
     </style>
@@ -24,6 +23,8 @@
 <div class="scrollmargin"></div>
 <pre id="editor2">minHeight = 2 lines</pre>
 <div class="scrollmargin"></div>
+<pre id="editor3" style="width: 40%;"></pre>
+<div class="scrollmargin"></div>
 <pre id="editor"></pre>
 
 <script src="kitchen-sink/require.js"></script>
@@ -46,6 +47,14 @@ require(["ace/ace"], function(ace) {
     editor2.setOption("maxLines", 30);
     editor2.setOption("minLines", 2);
 
+    var editor = ace.edit("editor3");
+    editor.setOptions({
+        maxLines: 100,
+        autoScrollEditorIntoView: true,
+        maxLines: 8
+    });
+    editor.renderer.setScrollMargin(10, 10, 10, 10);
+    
     var editor = ace.edit("editor");
     editor.setTheme("ace/theme/tomorrow");
     editor.session.setMode("ace/mode/html");
diff --git a/lib/ace/virtual_renderer.js b/lib/ace/virtual_renderer.js
index 27da0dcb..386bbf00 100644
--- a/lib/ace/virtual_renderer.js
+++ b/lib/ace/virtual_renderer.js
@@ -919,6 +919,8 @@ var VirtualRenderer = function(container, theme) {
             (this.$minLines||1) * this.lineHeight,
             Math.min(maxHeight, height)
         ) + this.scrollMargin.v + (this.$extraHeight || 0);
+        if (this.$horizScroll)
+            desiredHeight += this.scrollBarH.getHeight();
         var vScroll = height > maxHeight;
         
         if (desiredHeight != this.desiredHeight ||
@@ -939,9 +941,6 @@ var VirtualRenderer = function(container, theme) {
     };
     
     this.$computeLayerConfig = function() {
-        if (this.$maxLines && this.lineHeight > 1)
-            this.$autosize();
-
         var session = this.session;
         var size = this.$size;
         
@@ -949,9 +948,6 @@ var VirtualRenderer = function(container, theme) {
         var screenLines = this.session.getScreenLength();
         var maxHeight = screenLines * this.lineHeight;
 
-        var offset = this.scrollTop % this.lineHeight;
-        var minHeight = size.scrollerHeight + this.lineHeight;
-
         var longestLine = this.$getLongestLine();
         
         var horizScroll = !hideScrollbars && (this.$hScrollBarAlwaysVisible ||
@@ -962,6 +958,12 @@ var VirtualRenderer = function(container, theme) {
             this.$horizScroll = horizScroll;
             this.scrollBarH.setVisible(horizScroll);
         }
+        // autoresize only after updating hscroll to include scrollbar height in desired height
+        if (this.$maxLines && this.lineHeight > 1)
+            this.$autosize();
+
+        var offset = this.scrollTop % this.lineHeight;
+        var minHeight = size.scrollerHeight + this.lineHeight;
         
         var scrollPastEnd = !this.$maxLines && this.$scrollPastEnd
             ? (size.scrollerHeight - this.lineHeight) * this.$scrollPastEnd