Quote Originally Posted by yeohray View Post
...When the brown frame is moved upwards, the underlying green bitmap shows through, and is sharper than the green background that's part of the brown frame...
Check that the frame isn't using shadows or transparencies or other special effects. Xara makes these into bitmaps at the live effect resolution (Utilities -> Options -> Effects & Plugins in the older version I have). That could be the cause of your problem.