I have no idea what to tell you on this.
The paperdoll is a hard coded item that is the exact same as the paperdoll in the default inventory window and no changes to it whatsoever. Also I have roughly 100 people I know that are using the same persona window with no issues.
I'd imagine it would perhaps be a graphic issue but the step you took previously discounted that theory as the paperdoll in both windows are the same and you would have the same issue with both windows if it was a graphical issue.
The UI coding is quite simple. Imagine it as a TV and the channel is on the paperdoll channel. We get whatever SOE is sending on that channel no matter where we move the TV...
I hate to say it but i'm at a loss as how to resolve this issue.
I'm afraid I would recommend not using either feature.