I'm not familiar with Oracle reports, so I can't offer much. The elasticity property that Henka mentioned seemed worth a look, but if the report field should already be tall enough, then maybe you need to look at something else, like the values that are being put in that field, or the font size. Just making some obvious guesses. :-)
What are you actually putting in that report field? Is it a field from your data (so the contents will vary), or a literal string, or something else?
James