scrollable div inside container

I have the following HTML: http://jsfiddle.net/fMs67/. I'd like to make the div2 to respect the size of div1 and scroll the contents of div3. Is this possible? Thanks! UPDATE-1: This is the more advanced case that I oversimplified when I asked the question: http://jsfiddle.net/Wcgvt/. I need somehow that header+it's sibling div to not overflow the parent div's size.