This behavior was changed in version 2.3.4 so that XFile's Visual Control will automatically resize itself and eliminate this blank space when the buttons are hidden.
If you are using a version prior to 2.3.4 and upgrading is not an option, the following workaround can be used:
Put the OBJECT tag that contains XFile's Visual Control in a DIV, and then set the STYLE properties to "crop" the right side off of the control.
<DIV style="height: 200px; width: 305px; overflow: hidden;">
<OBJECT classid="CLSID:230C3D02-DA27-11D2-8612-00A0C93EEA3C" codebase="SAXFile.cab"
id="AXFFile" style="height: 200px; width: 400px;" VIEWASTEXT>
<PARAM NAME="EnableUploadButton" VALUE="False">
<PARAM NAME="EnableAddButton" VALUE="False">
<PARAM NAME="EnableRemoveButton" VALUE="False">
This code sets the width of the DIV to 305 pixels and sets the overflow property to hidden to crop off the right size of the XFile Visual Control where the buttons are normally displayed.