1) Neither SOE or I have changed the Hotbar XML since January 2007, so any issues you're having can't be a result of XML incompatabilities.
2) All Hotbar windows are derived from the same XML file, so if one is working all should be.
3) I am not able to reproduce this problem on my end and other users have posted they aren't having this issue.
Given all of the above, it sounds like you may have a corrupted settings file. I wish I could be more help but we've prety much ruled out the possibility of this being a custom UI issue.
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