A: 

Animating the frame doesn't animate changing the font size. If I understand what you behavior you are seeing, I think you have the label's adjustsFontSizeToFitWidth set to 'True' so you're seeing the frame animate to size followed by the instantaneous readjustment of the font size.

You might try to scale the label's transform so that the frame and font scale simultaneously.

TechZen
Actually no this isn't the case. The adjustFontSizeToFitWidth isn't set here and I'm actually *not* trying to change the font size, just the frame - which is in yellow. However what happens is that the dest frame (in this case) "fits" the text, so it first redraws that layer stretches it to fit the original frame, then reduces it. That's why it looks weird like this.
littleknown
not sure then. Its an interesting problem. I'll see if I can't reproduce it later today. I'm curious myself.
TechZen