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first of all: nice addon! I have some small issues with the addon you maybe can reproduce:
1. I have buttons aligned horizontally via HorizontalLayout and added (text-)overlays to them. If the size of buttons (widths) change via server then overlay position is not refreshed and stays as before.
2. If my application needs long to load on client side browser (several images at buttons) then it seems that the overlay position is calculated before the components are laid out finally. The overlay then hangs around somewhere. Unfortunately, I can't reproduce reliable.
3. I had a strange experience with an overlay placed on component that is part of a CustomLayout. If the name of the placeholder in the custom layout (specified in div element as location="master-tabs") was some special sequence then positioning of overlay didn't work. Changing the name to e.g. "master-tab-line" worked. I really wonder how that appears. Maybe some CSS class names or IDs of the div element collide with something of your component? Unfortunately, a reproduction example would require a much effort.
I'm using Vaadin 6.7.2, FF 7, IE8. Addon version is 0.9.8.