The magenta background is fixed in the latest service pack.  However, there is now a "memory" distortion effect where it appears that the cursor drags the area it was previously over with it.  This can be seen on the examples at high zoom and when moving between shapes.

Anyone out there to comment when this will be fixed?

Hi Kevin,

Thank you for reporting this issue. It is now fixed and the fix will be included in the upcomming service pack of the diagramming component.

When I middle-click on a map, the Pan Tool icon displayed has a magenta background, suggesting its transparency has not been set correctly (I'm using Windows 7 if this is relevant).  Am I able to correct this?