http://bugs.winehq.org/show_bug.cgi?id=20871
--- Comment #3 from oddbio@hotmail.com 2009-11-30 21:41:30 --- Just tested in wine 1.1.33 and the problem seems to persist, although slightly different.
It now shows a window inside the window, even though I have the "emulate a virtual desktop" disabled.
Here is how it looks now: http://img412.imageshack.us/img412/9339/csbad3.png
You can clearly see the little window inside the window, in addition to the same stretching as before. However, now it appears right away instead of after some time.