ANOTHER UPDATE: I received confirmation from Joe Stegman that yes, this is indeed a bug in Silverlight 2 Beta 1 but has been fixed in the forthcoming Beta 2.
UPDATE: This behavior can be fixed by adding a clip to the bounding control which in this case is a Rectangle.
I finally had time to sit down and really debug the Silverlight animation problem I described in a previous post. I recommend heading over there and reading that post, it also displays the problem in action.
The issue is that when using the Height or MaxHeight properties to restrict a TextBlock, if the text is longer than is allowed by the defined size, even though visually the text is truncated, the area in which the text would be still responds to mouse actions. It does not matter if the properties are set on a parent object like a StackPanel or on the TextBlock itself, the issue is the same.
Unless I'm missing something if the text is visually truncated, the non-visible area should not respond to mouse events. If anyone knows of a reason for this or a way to fix it, please let me know.
Below is a sample app demonstrating the problem. To see the grid working normally, move the mouse around and watch the squares change color. What should happen is that the square that the mouse is in turns red, and when the mouse leaves the square goes back to green. If you click an item so that the text changes, then the mouseover action changes. Now the area about two and a half squares below the selected one will also turn the square red instead of the square that the mouse is over. If you click the square again to set it back to normal, it acts as it should.
You can download the code for the example from here.