The heading says it all. I am confused why Captivate only allows text entry boxes to sit on one line and do not wrap. Instead the only alrternative is unsightly scroll bars that do not fit every situation. I mean a text entry box might be 12 lines, with a character limit that prevents the text from overflowing, and yet the only way to force it to wrap (and be validated) is to force scroll bars.
Is there another way?
That's just the way it is currently designed to work. There is no workaround using the default Text Entry Box.
If you think it should work differently, you can submit an enhancement request to Adobe using the form provided on their website. If enough people ask for something, they'll generally listen.