I was alerted to this bug in my hack and thought it was something I did, but then I checked the original game and saw it was in there as well, so then I checked Pandora's Box to see if you guys may have corrected it, but I see it's still here as well:

As you may or may not be able to see, the merchant is standing on Edgar's head there, like the object layering priority switched or something.
This only happens when the merchant is talked to from the LEFT side.
I checked both the level editor and the code for the NPC's event @ CA/CA8D, it looks all good to me - all it does when talked to from the left is this:
CA/CAA5: 31 Begin action queue for character $31 (Party Character 0), 4 bytes long (Wait until complete)
CA/CAA7: 82 Move vehicle/entity down 1 tile
CA/CAA8: 81 Move vehicle/entity right 1 tile
CA/CAA9: CC Turn vehicle/entity up
CA/CAAA: FF End queue
CA/CAAB: FE Return
There's no entrance event messing with it or anything, so its a mystery to me and I can't seem to fix it. =/
Re-setting the object layering priority in the code did not fix it. I know it's nothing big, but it does annoy the hell out of me.

Any idea??