Really annoying highlight problem, I hope it's not a bug

[Zuren Scribe]

Baically, highlights seem to not work right. Whenever I highlight something, the highlights are NOT visible through other prims and/or avatars. It should look like this: (NOT my picture)

Normal

What mine does:

Bugged?

As you can see, the highlights are not seeable through the prim, as they should be. It's effecting all my objects and all prims. Please help, this is making building a nightmare. 

[Liisa Runo]

The picture give impression that you have "select texture" enabled. But i think the real problem you are having is fixed with: Tools -> Show hidden selection.

[Zuren Scribe]

EDIT: I found a "RenderHiddenObjects" in the Debug menu was False, I changed it to true, and it's all working again.