Here\'s my problem:
xaml file 1: a templated list control
Yeah Set VerticalStretch for your repeating element to Stretch, that should automatically make them behave as part of the list.
As for the list, if it blows out of your container, put it in a Dockpanel.
Sorry I couldn't understand what you're doing with the scale transform :) ... but it does sound like hammering a screw in.
Maybe post a screenshot if that doesn't do it to help us understand.