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When you place a drop shadow on an image , the blur setting is what determines the color drop off in the shadow. In PSP5 this setting has changed its resulting appearance somewhat and it is so subtle that unless you have created border backgrounds you probably never even noticed it. If you take a look at the images below, you will see what is happening when you are applying the shadow and why it is causing the 'gaps' in your border backgrounds.
As you can see here the drop shadow goes all the way from the top of the image to the bottom.There are no gaps.
With a blur of 20 you can see where the shadow starts to 'round off' at the edges. This is the cause of those gaps.

So you see in most applications, this 'rounding off' will not affect your finished image in any way, but for bordered backgrounds where you have tiling it becomes quite noticeable and can ruin a border.

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