Mike, what you are describing is a well known issue (at least on this list) with Mac Firefox and Camino. Their Gecko engine has two text rendering modes, the regular one which has the "heavier" look and the thinner one which has much lighter anti-aliasing. Whenever an element's opacity drops from 1 to 0.9999 (when a fadeOut begins for example) the text rendering mode changes from heavy to thin, causing the text flicker or blink you described. The reverse happens when the fadeIn passes 0.9999. A way around this can be to set: body {opacity: .9999;} in the CSS so that the text is forced to use the thinner mode all the time. Then, no element ever reaches 1 opacity.
I don't have a fix for Christian's issue though. I have seen it occur plenty, but have not had experience tracking down a workaround as yet. I believe Karl Swedberg may have addressed this issue with his ClueTip plugin. A thorough search of the list archive may turn something up. Joel Birch.