When I put face paint on a female character with the "rebel" face style, the game displays the art with a semi-transparent copy of the design stretched slightly taller than the original. To the best of my knowledge, this does not occur with any other face style, male or female, although I have not tested every one.
I did enough poking around to determine that it seems to be specific to that specific face style, and does indeed happen with newly created characters with that face.
I also stumbled across something of a workaround. The visibility of the glitch is diminished if you place a solid shape under the art, such as a scaled/stretched white circle. The quality of the workaround breaks down around the edges of the face, where you can see the (continuing the example) ghosted edges of the white circle and art becomes more evident.
I only noticed this recently, as I had not really taken time to mess around with the art maker. I have updated my system's firmware and the game itself since creating the character, but cannot say whether or not this had anything to do with the glitch.
I have the 80GB version of the PS3 running firmware 2.53. I have updated Rock Band 2 once, the single time I've taken it online about a week ago (I believe that was patch 1.01). I do not have regular access to broadband.









