Your not using a center design are you? The problem is that VSD snaps the image of the element with the effect applied so if your element slides across the background you'll get the problem. I opened your page and it look fine to me as I happen to have my browser minimized a little. When I squeezed it a little more it showed, You can see the same thing by maxing and mining your browser where you can actually find the sweet spot. Another option is to use a center design where the elements don't actually move across the background.

Yep, that's what I found out. If you use the center option and a full size pic then it works fine. The only time I see the problem is when I use a small pic, or the repeat background.

I don't think CC will find a way to fix this but an html box hand coded with the appropriate code is a fine work around to get the job done. I'll put an example up on my site with code examples for shadows and round corners so when other users fine this thread they have another option.

Sounds cool! Another fine feather in yer cap!!

Strange, I used a single image and let it repeat since i just wanted to do a quick trial. I put a rectangle with a shadow on it and it was fine, even over the 'lines' where the image repeated. Maybe it worked because my image was fairly large? – it only repeated about 4 times to fill the page.