Outline of Flash movie visible in IE

I have suddenly come across a new and strange phenomenon ocurring with my flash site in IE.
It started a couple of days ago. When my Flash movie first loads, the outline of the embedded movie shows up as a white dotted line when the cursor rolls over the movie boundary. After clicking on links in the movie, the line disappears and never reappears (it’s only on the initial load of the page).

It’s only an Internet Explorer issue and has started since a recent automatic update of Explorer occurred.

Has anyone else experienced this with their Flash 8 movies?

Apparently you didn’t read about the new ActiveX changes…

here’s just one of the many threads about this new issue: