@jarhead said:

So... none of the suggestions above worked for me, neither having a fresh install of SketchUp 8... So I determined that it must be something in the model itself.

A clean new project doesn't have the bug, only some files that I work on from the get go.

After cutting and pasting the elements of the file I was having an issue with, into a new SketchUp project, the issue isn't there anymore.

I have Layers Panel & Layer Manager, and they don't seem to be the problem (evident by the fact that the issue persisted with a clean SketchUp install

Sometimes people create models that have some corrupting issue. Copying the geometry to a new file sometimes helps. On the other hand, if you're still using SketchUp 8, that might be a clue, too.