UltraDVD Black boxes / rectangles watching Blu ray with picture-in-picture (PIP)

I'm running PowerDVD 9 ultra on Windows 7. When I enable the PIP feature of a blu ray disc (including "Up" and "The Matrix"), I see black rectangles on top of the main picture, and then the secondary picture appears, but not necessarily on top of the black rectangles. Does anybody else have this issue?

I complained to cyberlink. They told me to update my drivers, which I did, but the problem persists.

I have an ATI Radeon 4800, if that helps.

Thanks for any hints.