When using IE8 with 3.0.3 to run a gallery of images, the loading animation has some problems.
1. Only the top half of loading.gif is visible.
2. The word "Loading..." is aligned at the top if loading.gif, not the middle.
3. When the forthcoming image fades in, the loading animation is still visible on top for a split second.
None of these problems occur if IE8 is switched into IE7 compatibility mode.
Problem #3 can be demonstrated on the Shadowbox home page with the Mustang gallery. The other two problems occur on a gallery I built. I'm using a full build of 3.0.3 with everything except FLV support. Nothing was modified in Shadowbox and there are no Shadowbox overrides in the site's CSS.