The purpose is for Dialog boxes in RPGs or something similar. Here's the cap, http://www.box.net/shared/flbrtsc86h I hope it helps.
Theres a few additions, now instead of the text possibly going off screen if its too long, the box will drop down a little bit.
It simply checks if the NewWidth would be wider than a predetermined length (like the size of a background image to put behind your dialog box.) If so it drops down. Then if it is twice as much as that length, but not 3 times as much, it will drop down a second level. And if its three times as long, it will drop down a third level.
I set it up to also adjust the height of the background images, and theres a private variable for those called OrigHeight. You set that as the starting Height of your image (in the panel on the left, no need to do it in an event.) So when the Text box is adjusting its height, the image will set its height to the OrigHeight + an amount depending on how many levels the text has to adjust.
Theres a seperate event sheet to control the actual dialog, its not a very good example and theres a few kinks but I just hacked it up tonight for this demo.