In Firefox 3 and later (and probably older versions), selecting content within an iframe always seems to use the grey selection background colour used for a document that doesn\
Hypothesis: It seems that for dynamically written iFrames, either a XUL Iframe is rendered or the Gecko engine doesn't honor the styles.
Short of submitting a bug, the only workaround I can see is to wrap our contents in a textarea
and style it to make it 'invisible': http://jsfiddle.net/mrchief/YYXSY/19/