Set Color Bug?

[Doug]

I'm using unstructured Frame 7.0 on WinXP.  When I perform the
following steps, the image I imported by reference vanishes:

1) Click File > Import > File
2) Double-click an image file (BMP, PNG, etc.)
3) Set the DPI and click Set.
4) Click the image inside the anchored frame to select it.
5) Click the Set Color button on the Tools Palette
6) Click the White color square to select White color.

This occurs regardless of whether I set the pen pattern or the fill
pattern.  In fact, if I change my page color to off-white (via the
Windows Desktop) and then set the pen pattern to solid, I can see a
white border around the vanished image.  If I use the Set Color button
to change the color to any color other than white, the image
reappears.

Surely this isn't works as designed behavior?

Thanks,

Doug