1) Change the property "Force own texture" to true.
2) Look at the strange behavior:
<img src="http://img143.imageshack.us/img143/118/forcetexture.png" border="0" />
Works OK here. What's your graphics card again? Enabling 'force own texture' uses render-to-texture, which was the source of many problems for many users (it was behind the "layout not appearing" bug and all the picture editor problems when it was OpenGL powered).
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On my second computer (where the error occurs) I have Radeon X1300/X1550 Series with current display drivers.