Here is a little sample using your idea. Size the form before clicking the button to see it work to fill us the new client region of the grid.
forum10969_1800.zip
The only tricky part is that calling RowHeights.ResizeToFit has the potential to make the vertical scrollbar appear if it is not already visible since increasing the hieght of the cells may mak eit so not all rows are visible. So, to handle this, one option is to just always make it visible to avoid this problem.