Corona03,
I've not heard of that happening in any version of Paradox as a bug, so I suspect you have some code that's trying to resize something on the form. What's likely happening is that it's calling one of the build-in variables and trying to resize it generally. What I think is going on though, is that the built-in variable in actually pointing to the form, not the object that's trying to be resized. (Built-in variables are self, active, subject, and so on.)
Take a moment to notice which object you have to enter with the mouse when the form changes size. Next, open that form in Design mode and see if that object has events defined for mouseEnter and/or MouseExit.
I think you'll find there's some code in one of those methods. Review that carefully to try to discern the original intent. Then, replace the calls to the built-in variables with the name of the real target object.
That should help a great deal.
Hope this does...
-- Lance