WIN XP(SP3)32bit LBC 1.137.01
System launchbar set to autohide
If the LBC dock is parked at the same edge as the system launchbar and set to reserve space, then both can co-exist.
If LBC is then set to slide, the system launchbar can no longer respond to a "mouseover"
If the LBC "activation zone" was set to be a few pixels clear of the edge and a few pixels wide then it should be possible to "pass through" the LBC activation zone and still find the hot spot for the system launchbar.
I'm convinced I can see the edge of both bars when they are both hidden because there are two distinct "stripes". the outermost being the blue system colour whilst the innermost is the grey "aluminium" of LBC. When the mouse activates LBC then it can be seen to obliterate the blue system "stripe".
I know the workaround is to park them on opposite sides but then again "If I can see 'em I should be able to activate 'em", and, parking things on the right always seems to conflict with resizing windows when they are already close to the bottom/right corner.