Text is always red on check-in

After installing SP 4.0 on SW 2007, we are encountering alltext on check-in as being red (indicating that a part appearsdifferent than what is in the vault?). [see jpg below] This happenseven when the local files are identical to the vault. The vaultversion is SP 1.0. Any idea what is going on?

SolidworksWorkgroup Pdm