Okay I had the same problem for a website I made with wordpress at my work. I found a solution which I hope is working for more people ??
open: wp-admin/inline-uploading.php in your favorite editor and go to line: 246
change:
imga[{$ID}] = '<img id=\"image{$ID}\" src=\"$src\" alt=\"{$title}\" $height_width />';
imgb[{$ID}] = '<img id=\"image{$ID}\" src=\"{$image['guid']}\" alt=\"{$title}\" $height_width />';
to
imga[{$ID}] = '<img id=\"image{$ID}\" src=\"$src\" alt=\"{$title}\" $height_width />';
imgb[{$ID}] = '<img id=\"image{$ID}\" src=\"{$image['guid']}\" alt=\"{$title}\" />';
this will remove the height tag in the image insterted via IE. It seems to be working on my site, so it probably will for yours too.
It does also change the size of the image in the place where the image menu is (so, over the thumbnail) but nothing bad cuz overflow is hidden (so it seems)
