Im still unable to reporoduce this. Perhaps a ATI-related bug? Their drivers are crappy, no dubt about...
Step 1 is obvious.
Not all the way means not until it stick to the screen edge? Or just not over the edge? Just close, i assume... Into both cases, no problem with resizing up...
Step four - movie very correctly get resized all the way up, even after it grow over the edge.
So i assume that there is time to ask ATI, what the hell they are doing with overlay video zoom (resize)
http://sweb.cz/bbone3/test.jpg
(i ofcourse used Overlay 1 for test, this is just force rgb for showing it, hehe...
)