I'm pretty sure this is a bug...

I'm using 3.2gamma, cs 4811. I notice that when I enable the
'showBoundsInHalo' preference I can no longer remove a morph from the screen
via the [X] halo handle. It was a while before I made the connection as I
thought I had myself done something stupid as is often the case.

It is a repeatable problem. As soon as I turn off the option, I can remove
from screen quite happily.

Sean Charles.