Confirm on 8.04, seen it from release to release. Also happens on vertical panel (with the applet colapsed to a 1-pixel width column). Happens from time to time, unpredictably, but i used to believe it was related to particularly heavy starts. Say, with a lots of apps in the session. Perhaps a race condition, with the panel? When colapsed, the applet still behaves normally: the lines move, and it responds to the mouse (if you have good aim, this is). Changing the size in the preferences windows resets it.
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