Funny, Snowy, it must have something to do with the Surface? Windows Pro 8.1 64 bit.
no, not really with the Surface and not even with Windows 8. i bet the same would happen to you on Windows 7 if you set your display scaling to 125% or 150%.
whether WindowBlinds/Start8 is buggy on high dpi or it is just the skin that is buggy is the question. it is sure worth a bug report, as we will see retina displays for desktops & laptops rather sooner than later anyways.
but hey, even Windows is not ready for high dpi although Microsoft sells the Surface, just look at those tiny tray icons.