Hmm. Even with all extensions turned off (which prevents Emailer running as it seems to need at least one of OT extensions) the highlighting madness persists on my other remaining OS9 application, Design Studio aka Ready Set Go. This suggests that the problem is in OS10.2.8 itself rather than an extension conflict, especially as everything worked fine under 10.2.7. Unless anyone has a better idea it sounds like having to wait for Panther to lope up on us.
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