Hey Paul,
I know this was posted a long time ago, but I was wondering if you were able to solve this issue or pinpoint what caused this problem?
I’m using Compressor 3.5 to transcode from HD to an SD DVD and I’ve run into the same issue of pink outlines when setting Details Level to anything other than 0.
Please let me know if you have any answers, I haven’t found any other mention of this problem online.
Joseph