It always corrects itself if I rebuild the solution, but if I leave a form and come back to it later it frequently re-appears.
-Larry
http://support.microsoft.com/kb/921019
The article says System.Design.dll v2.0.50727.193 should fix the problem, and the one I attached is the v2.0.50727.312 from my computer... I have VS2005 SP1 and VS2005 SP1 Vista Update installed.