Cannot log into EasyBlog while site displayed within an I-Frame

I am using EasyBlog as an internal blog site for my organization. I intend on it being the "Splash" page for my Custom build applications portal site. As such I have encapsulated the site onto the landing page of the Applications Site within an I-Frame. All works well with one very frustrating exception. I am unable to "log-in" to edit, submit etc... blogs. If I log in to a direct link site outside of the I-Frame then load the site within the I-Frame, I am logged in and all appears to work, however I would really rather that we can log into the blog site within the I-Frame on the application site... Note this is an internal site and not directly available from the internet, however I am able to allow remote login to the server if it would help... The Applications/I-Frame site and the Joomla Site are on DIFFERENT Windows 2008 R2 Servers...

Here is what I think is happening.,..

Problem: Go to http://itdev03/itapps/apps/home/index.php click on cao page link and press the login button. The login silently fails.

Info: I have tried updating the source file found at:
itdev03:C:\inetpub\wwwroot\itapps\apps\home
I think the solution is to set the target to _parent:

<script type="text/javascript">
function onLoadIF(frame)
{
var elements = frame.contentDocument.getElementsByTagName("*", //*******************************
len = elements.length;
while( len-- ) {
elements[len].target = "_parent";
}
}
</script>

<iframe
src="http://intranetdev.islandstrust.bc.ca/index.php/cao";
target='_parent'
onload="onLoadIF(this)"
align="left"
width="<?php echo $iframe_width; ?>"
height="<?php echo $iframe_height; ?>"
style="border:none">
Error: Your browswer is not including the iframe
</iframe>

However, contentDocument on the line with the //******* gives an access denied error.