Docky starts to hide and then unhides because of obscuring windows

[Info 11:24:03.973] Docky version: bzr docky r960
[Info 11:24:03.986] Kernel version: 2.6.31.14
[Info 11:24:03.988] CLR version: 2.0.50727.1433
[Info 11:24:04.278] [DockServices] Dock services initialized.
[Info 11:24:04.465] Setting theme: Air
[Info 11:24:04.892] [PluginManager] Loaded "Clock".
[Info 11:24:04.901] [PluginManager] Loaded "Weather".
[Info 11:24:05.635] [AbstractWeatherSource] Weather Underground: Reloading weather data

When the mouse is moved off of the dock and either intellihide or dodge windows the dock begins to hide, because with the zoomeffect on mouseover the dock becomes obscured the active or some window. But when the zoom effect wears off and the dock is no longer obscured by the active or any window the dock shows up again.

To recreate this bug place your active window to the left edge of your dock and mouse over the dock on the right side of the dock with intellihide or dodge windows active.

With fade on hide the effect is that the dock becomes transparent for a short while while becoming smaller. When fade is not active the animation essentially becomes a lag.