After tearing my hair out all afternoon - I'm throwing myself at the mercy of the Litmus community!

I'm using a VML background on a table cell which has 20px of cellpadding - the problem however is that in Outlook 07, 10 & 13... an unwanted 20px of padding is inserted below:

Anyone able to shed any light on why this might be happening, or suggest any potential changes to my code below? Given that the idea is to use the below as a template, I'm unable to put a fixed height on the VML unfortunately - if anyone suggests that as a potential fix.

    <table width="620" border="0" cellspacing="0" cellpadding="0" class="width290">
      <tr>
        <td background="http://placehold.it/620x310" bgcolor="#cccccc" valign="top" class="width290 bgcol">

    <!--[if gte mso 9]> <v:rect xmlns:v="urn:schemas-microsoft-com:vml" fill="true" stroke="false" style="width:620px; height:"> <v:fill type="tile" src="http://placehold.it/620x310" color="#cccccc" /> <v:textbox style="mso-fit-shape-to-text:true" inset="0,0,0,0"> <![endif]-->

          <div>
            <table width="620" border="0" cellspacing="0" cellpadding="20" align="center" class="width290">
              <tbody>
                <tr>
                  <td>

                  <table width="320" border="0" cellspacing="0" cellpadding="0" class="width250">
                      <tbody>
                        <tr>
                          <td bgcolor="#fefad9" style="font-family: Arial, 'Helvetica Neue', Helvetica, sans-serif; font-size: 12px; color: #555555; padding: 20px;">Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis placerat nisl ante, nec pharetra erat varius eget. Quisque nunc libero, tristique sit amet dictum ultrices, maximus in est.</td>
                        </tr>
                      </tbody>
                    </table>

                    </td>
                </tr>
              </tbody>
            </table>
          </div>

    <!--[if gte mso 9]> </v:textbox> </v:rect> <![endif]-->

        </td>
      </tr>
    </table>
    ```

Thanks for any help people can give!