  The X-ray spectra of the narrow line Seyfert 1 galaxy, 1H 0707-495, obtained
with XMM-Newton, from time periods of varying X-ray luminosity are analysed in
the context of understanding the changes to the X-ray emitting corona that lead
to the extreme variability seen in the X-ray emission from active galactic
nuclei (AGN). The emissivity profile of the accretion disc, illuminated by the
X-ray emitting corona, along with previous measurements of reverberation time
lags are used to infer the spatial extent of the X-ray source. By fitting a
twice-broken power law emissivity profile to the relativistically-broadened
iron K fluorescence line, it is inferred that the X-ray emitting corona expands
radially, over the plane of the accretion disc, by 25 to 30 per cent as the
luminosity increases, contracting again as the luminosity decreases, while
increases in the measured reverberation lag as the luminosity increases would
require also variation in the vertical extent of the source above the disc. The
spectrum of the X-ray continuum is found to soften as the total X-ray
luminosity increases and we explore the variation in reflected flux as a
function of directly-observed continuum flux. These three observations combined
with simple, first-principles models constructed from ray tracing simulations
of extended coron self-consistently portray an expanding corona whose average
energy density decreases, but with a greater number of scattering particles as
the luminosity of this extreme object increases.
