Just to report on the issue further and how I was able to solve the PROBLEM. After experimenting with many vi settings, eventually I found out by pressing the maximize/restore icon box (Top right border of the vi), and then saving it, the problem goes away (in this case it is the debug_cntr-mnu.vi. And I also found out that many vi's (converted from version 6.02, front panel set to Modal and size set to "size to screen") exibit the same behavior. and for some of them, I had to to do what I did (press the maximize icon then save , exit, reload the vi) many times before the problem goes away for a particular vi.
However, this is an issue with LabView 7 express converting vi's from previous versions of LabView (and in my case version 6.02)
