To dynamicly resize colorbox you want to say.
colorbox.resize({width:"300px" , height:"300px"})
If you want to resize a color box that loads an Iframe you would add something like this to the head of your target document.
$(document).ready(function(){
var x = $('mydiv').width();
var y = $('mydiv').height();
parent.$.colorbox.resize({width:x, height:y});
});