Using Ubuntu 10.10 64 r33877
If you render the attached blend file (or view the attached image), you can see that the cube is getting some alpha issues.
As for settings, the only this that was done was to make the cube a DoF target, and set the defocus node to the settings you see in the screenshot. The problem goes away when the DoF target is cleared.
Sorry if this is not a bug
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Hi, this is more of a known limitation of how the defocus node works. It's nothing to do with the DoF object, all that does is set the focus point distance to the distance between the camera and that nominated object, rather than setting it manually. If you clear the object and type in 11.2 or so in the Distance field, it will do the same thing.
The issue is that the node is getting confused what should be FG and what should be BG. You can use the Threshold parameter to tweak this internal decision making process a bit, but yes it's still possible that after that there might still be artifacts - part and parcel of the post process technique that the node is using. Since it's not really a bug as you imagined it, and the node is doing what it's designed to (even though it may not be perfect), I'll close this report.
thanks