You can click and drag the Mute box to wherever you want it, I wouldn't want to shrink it due to the fact that it would be useless if I didn't notice it was there.

Your problems with crashing and freezing etc are because you run out of system resources, not a problem with keyclone.
In windows XP, i've found that each wow client typically uses about 500MB of RAM, so I would suggest getting 4 gig of ram since that seems to be barely enough for me.
Most of your problems are related to running out of memory.

The resolution setting in the bottom part of the maximizer setting window is what resolution wow will be running in that window, I run all mine on 800x600 regardless of their size on the screen to save system resources.

EDIT: Looks like someone else did reply after all, eh, Keyclone?