You may not need fancybox for that but create your own customized script.
Just for fun, with an html like this
<a class="myfancy" href="http://jsfiddle.net/">show my content in div</a>
<div id="targetContent">
<a id="myClose" href="javascript:;">X</a>
<iframe id="targetIframe"></iframe>
</div>
use some CSS to hide the #targetContent
like
#targetContent {
position: relative;
display: none;
width: 500px;
height: 350px;
overflow: visible;
background-color: #fff;
}
and style your close button #myClose
the way you need it.
Also set the basic CSS for the iframe like
#targetIframe {
width: 100%;
height: 100%;
border: 0 none;
}
Then use this code to bind all your selectors to their specific events and callbacks for smooth transitions
jQuery(function ($) {
// cache elements
var $targetDiv = $("#targetContent"),
$iframe = $targetDiv.find("#targetIframe"),
$close = $targetDiv.find("#myClose");
// bind click events to first link and close button
$(".myfancy").on("click", function (e) {
e.preventDefault();
$iframe.attr({
"src": this.href // add the content to iframe before showing
}).parent($targetDiv).slideDown(500, function () { //show div
$close.fadeIn(200).on("click", function () {
$(this).fadeOut(100, function () { // fade out close button
$targetDiv.slideUp(500, function () { // hid div by sliding it up
$iframe.removeAttr("src"); // remove after closing the box
}); // slideUp
}); // close fadeOut
}); // on click myClose
}); // slideDown
}); // on click link
}); // ready
See JSFIDDLE
NOTE: .on()
requires jQuery v1.7