This is a bug in IE, and there is no way to solve it, apart from making the select box wider:
<select style="width: 500px;">
<option value="1">
This is a very long option, but it's cool, cause the select is also very long
</option>
</select>
Another alternative is to use a framework that will replace the selectbox with a styled combination of other elements. They will behave like a selectbox, but require javascript to work.
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