Big problem adding materials in assemblies

Today using Photoview360 2010, I opened a new assembly with the intent to apply materials to the different pieces.  The assembly consists of an outer plastic sheath (semi-clear plastic) with metal and colored components underneath.  I hid the top sheath part, but when I tried to apply a material to the part underneath it applied it to the hidden sheath, which re-appeared with that material applied.  Photoview is acting as if the parts are not hidden even though they are invisible.  I have tried old and new assemblies and have had two othe engineers try it on their seats with no success.  Has anyone run into this problem???  I've been using Photoview consistently since it came out last year with no issues until today.  This is, however, probably the first time I've used 2010 for this type of render so the issue has probably been there since we upgraded about a month ago.

 

SolidworksPhotoview 360