It turns out I had the sense of the GetLocalBounds bool wrong everywhere, so ...

views/controls/tabbed_pane/native_tabbed_pane_win.cc

 // Copyright (c) 2011 The Chromium Authors. All rights reserved.
 // Use of this source code is governed by a BSD-style license that can be
 // found in the LICENSE file.
 
 #include "views/controls/tabbed_pane/native_tabbed_pane_win.h"
 
 #include <vssym32.h>
 
 #include "base/logging.h"
 #include "base/stl_util-inl.h"
@@ skipping 39 matching lines @@
 class TabLayout : public LayoutManager {
  public:
   TabLayout() {}
 
   // Switches to the tab page identified by the given index.
   void SwitchToPage(View* host, View* page) {
     for (int i = 0; i < host->GetChildViewCount(); ++i) {
       View* child = host->GetChildViewAt(i);
       // The child might not have been laid out yet.
       if (child == page)
-        child->SetBoundsRect(host->GetLocalBounds());
+        child->SetBoundsRect(host->GetContentsBounds());
       child->SetVisible(child == page);
     }
 
     FocusManager* focus_manager = page->GetFocusManager();
     DCHECK(focus_manager);
     View* focused_view = focus_manager->GetFocusedView();
     if (focused_view && host->IsParentOf(focused_view) &&
         !page->IsParentOf(focused_view))
       focus_manager->SetFocusedView(page);
   }
 
  private:
   // LayoutManager overrides:
   virtual void Layout(View* host) {
-    gfx::Rect bounds(host->GetLocalBounds());
+    gfx::Rect bounds(host->GetContentsBounds());
     for (int i = 0; i < host->GetChildViewCount(); ++i) {
       View* child = host->GetChildViewAt(i);
       // We only layout visible children, since it may be expensive.
       if (child->IsVisible() && child->bounds() != bounds)
         child->SetBoundsRect(bounds);
     }
   }
 
   virtual gfx::Size GetPreferredSize(View* host) {
     // First, query the preferred sizes to determine a good width.
@@ skipping 307 matching lines @@
 ////////////////////////////////////////////////////////////////////////////////
 // NativeTabbedPaneWrapper, public:
 
 // static
 NativeTabbedPaneWrapper* NativeTabbedPaneWrapper::CreateNativeWrapper(
     TabbedPane* tabbed_pane) {
   return new NativeTabbedPaneWin(tabbed_pane);
 }
 
 }  // namespace views