I have also noticed this behavior. I had to set PS to use the default skin (instead of excluding it) and that seems to work.

Using Ps 7.01 and it never happened to me, but very dark themes make it hard to see the tools/tool bar. Try excluding it.

Seems like they really don't play nice together. Good to know as I use PS7. Although when I had the WB trial there were no problems.

What OS and version of Photoshop are you using?

and what do you mean by default skin?

Generally speaking if an application is showing problems when excluded it is either a problem with the system fonts set by the skin (typically a bug in the app which is exposed by unexpected font sizes), or a system colour issue where the skin has a colour combination which makes things appear invisible in the application.

Both of those would usually be specific to a given skin though.  Changing skin should resolve it.

If you stop the Desktop Window Manager service in services does this resolve the problem (you will want to turn it back on later of course)

Also are you using the 32 or 64 bit version of Photoshop CS5?

To help identifying the problem, theres some steps that could help:

1 - inform the Photoshop version, on Photoshop menu, go to "Help >  About Photoshop" and post the version (the latest update released this week by Adobe is 12.0.2)

2 - inform what Window setup is being used, floating windows or consolidated tabs

3 - does this issue happen with more than two different skins?

4 - are you using the latest WB and video driver updates?

Yes, with DTW manger off the program works as it should.

Excluding the app in WindowBlinds does not fix the problem but choosing default skin in the drop down box as Bebi suggested does.

Photoshop version:  12.0.2 x64 (problem also exists on the 32 bit version)

Consolidated tabs

OS: Windows 7 ultimate X64

Video Card ATI HD 6870

Video Driver Info: (These are the drivers that shipped with the card and are the most current. ATI states the card will not be officially supported until version 10.12)

WindowBlind that it occurs on: All

WindowBlinds Info:

Your computer has a Windows Experience Index base score of 7.3
Your Windows Graphics Experience score is 7.8

WindowBlinds version : WindowBlinds 7.2 (build 297 - Windows 7 Edition) - 64 bit OS

WindowBlinds is installed correctly on this PC
WindowBlinds appears to be activated on this PC
(LG E2340(HDMI)) 1 is attached to Radeon HD 6800 Series
(LG E2340(HDMI)) 2 is attached to Radeon HD 6800 Series

Wblind.dll      2010/12/03 12:50:20
Wblind64.dll      2010/12/03 12:50:08
Wbsrv.dll      2010/11/29 13:40:56
SevenConfig.exe      2010/11/10 16:21:27
Wbload.exe      2010/09/07 16:02:35
Wbhelp.dll      2010/09/07 16:02:34
Tray.dll           2009/10/21 09:13:19
Wbload.dll           2010/06/07 13:10:25
Screen.exe      2010/05/26 10:18:43

 Officially supported driver released and I updated, the problem still exists.

Also, it didn't exist until the last WindowsBlind update.