This first began happening with Merlin-beta build E. The putbacks into
that build were Swing and 2D. It still occurs with the latest promoted
build: merlin-beta-27.

1. Run the Stylepad demo
2. Create a new file (File, New)
3. Type several lines of text:

12345678
12345678
12345678
12345678

Allow the cursor to blink after the 8 on the fourth line.
It will erase part of the 8, and the 8 will not be redrawn.

4. Now, use the cursor (arrow) keys to move the cursor left,
back over the rest of the fourth line of text. The text will be erased.

5. Use the arrow key to move the cursor up to lines 1-3 of text.
Note that the blinking cursor does _not_ erase that text.

Dragging another frame over the demo causes the last line of text
to be redrawn inconsistently - sometimes it redraws, sometimes it doesn't.
The first three lines of text always repaint correctly.

This also happens with Direct Draw turned off.

Possibly related to the cursor droppings seen under Win2000?