The problem, is that I have a content div which stretches its container height-wise (container and content div have auto height).
I want the background container,
Somewhere you will need to set a fixed height, instead of using auto everywhere. You will find that if you set a fixed height on your content and/or container, then using auto for things inside it will work.
Also, your boxes will still expand height-wise with more content in, even though you have set a height for it - so don't worry about that :)
#container {
height:500px;
min-height:500px;
}