In trolling the internet I found that many have asked your question and all received the same answers as you have. They eventually accepted the cold hard truth as you will soon have to as well.
In IE, the options (drop list) section of the drop-down list is the same size as the, for lack of better terms, select portion (drop box). You will either need to resize the entire control, as this post details, or build a custom HTML control. I will most definitely be the first to admit it in the event I am wrong (along with many others that provided the same solution), but hope seems faint.
The custom control would not be TOO extremely difficult. Off the top of my head, maybe a "selector" div, and hidden ol, some mouseover / mouseout event handlers, and an ASP.NET repeater to populate the list items. I won't go into the details of implementing this custom control, because there are many ways you can do it. As Josh stated, Telerik and ComponentOne have already implemented such a control, but of course for a price. If you would like, I would be willing to hack together some code for you.