well it's not a bug at all,
but seems as with one of the last updates the lower left and lower right areas have changed. Before this there was a brown area and no inworld-view.
Now it's a bit weird: You can see the inworld-area, but you can not use this screen-portion for anything. That makes the chat-bar hang around a bit away from the bottom what I find very ugly.
Suggestion: Please make the emotes optional perhaps via a button to fold them away (I personally use them very rarely) and make the chat-bar draggable in that area. Then it would be pretty again. Any other solution is welcome too just the view at the moment I find disturbing.

PS: of course this is dependent to the resolution. At 1024x768 everything is okay, but at 1680x1050 it's as described above.

PPS: btw, though having set the options to default, the box with the names of the objects on top if they are selected appears now somewhere near the upper right corner, like the resolution was still the high one. and ... out of topic, but the chatlag is awfully at the moment.