Mark, As I'm sure you spotted already it's the CENTER and CENTERIMAGE options that are causing the problem.
The text doesn't get painted in the correct position. If I treat a static control the same as a group box, it works fine.
The only question is, should that be configurable by the programmer or just always done. The special treatment of the group box is always done, because if not done, the outcome is never acceptable.
But with the static control, maybe it should only get special treatment if the programmer asks for it. As I said earlier, I never saw any problems with a static control before.
With your example, if the static control is not give special treatment, on my system, the text is never painted in the correct spot. With special treatment, it is always painted in the correct spot, but the dialog is much more jerky looking to me during resizing. Changing the color of the static control just makes that worse.
If it was my program, I would either make the dialog not resizable, or I'd do away with the static control.
For a general purpose resizing scheme, it might be best to let the programmer turn special treatment for static controls on or off.