to summarize in one word:
why?
why using a popup, why using a fixed window?
i know it's easier to design it like that, but come on: you could have done the same by using 3 floating div's and a background image... an additional, centered div for the text, and a box around it all to center it on the screen -> voilĂ*, same result in an ordinary browserwindow. if
you're asking about browser-compability: think about mobile-devices and fixed popup-screens...
to answer your question: my konqueror cuts about 50px from the bottom, and both firefox and konqueror happily ignore the no-resize clause.

so yes: i can see the repeating background...
OS: gentoo linux 2.6.13-r3
konqueror: 3.5.1
firefox: 1.0.7