I fixed this problem by using the plugin
http://andrew-mcharg.blogspot.com/2009/06/jquery-bounding-region-plugin.html
I just retrieved the bounds for the enclosing overflow hidden parent
and the thumb bounds and made sure the thumb was completely visible
inside the parent.
For me, this works fine since I don't care to let the user expand a
thumb that isn't fully visible.
Now, the only problem I have remaining with this plugin is that it
creates a new fullsize-icon div for every position that the thumb can
be in. Since some of my thumbs slide/scroll, this results in more
fullsize-icon divs than there are thumbs. I think I'll create/remove
them on demand so that there is only one fullsize-icon div at any one
time (or simply change the position on one div). I'm not sure why you
had to creae a new div for each fullsize-icon position.