Description of problem:
Every time the VM guest updates it's screen, the GUI portion (ie, not the
borders) is pushed to the top of the display.

Version-Release number of selected component (if applicable):
libvirt-0.4.1-6.fc9.i386
gtk-vnc-0.3.4-1.fc9.i386
virt-manager-0.5.4-2.fc9.i386

How reproducible:
Every time

Steps to Reproduce:
1. Start VM from virt-manager
2. Place another window in foreground
3. Wait (not long) until the guest updates it's window
  
Actual results:
Guest VM portion of window flickers forwerd

Expected results:
Window remains hidden as expected

Additional info:
Very frustrating