The party frame thing is a known issue and Xrystal has posted a fix for it here:
http://www.wowinterface.com/forums/s...ad.php?t=43997 -- you can also just right-click the mouse on the red "Raid10" button when that happens to switch back to party mode.
The portraits thing is also a known issue due to a bug that Blizz accidentally introduced in the last patch before 5.0.4 went live. It causes the player model portraits to not clip correctly. So I changed it from being a face only portrait to full body until they fix it since most full body portraits won't show outside the borders... however, a few still do. I will switch it back to full face portraits when Blizz gets the bug fixed.