How to duplicate this problem:

New Morph/GeeMailMorph.

Move the position of the GeeMailMorph to about 40 at 40

NewMorph/Rectangle.

Rotate the rectangle using its blue halo.

Drop rotated rectangle into GeeMailMorph.

Now bring up halos on rotated rectangle, and notice that they aren't in the 
right place. In fact, they seem to be offset by the amount that the 
GeeMailMorph is offset inside the World.

This isn't just a halo problem; if you ask the rectangle its bounds or 
center, these will also be out of place.

-- 
Ned Konz
currently: Stanwood, WA
email:     ned at bike-nomad.com
homepage:  http://bike-nomad.com