System Information
Operating system and graphics card
Windows 7 64 bit, GeForce GTX 285, also tried with AMD Radeon HD 6500M/5600/5700 Series
Blender Version
broken - official 2.72 and probably even before it
Short description of error
When applying displacement with higher values it creates small holes in the displaced image. The more the displacement, the more holes appear.
Exact steps for others to reproduce the error
Open the attached blend file and see the result of the simple composite.