Hi,
Thanks for your response.
At first I had my playback properties set up exactly the way that you do in your screenshot. I then figured that one of these settings was preventing my event handler from being hit, so I turned off the all of the settings(set to false) for both unexpected window and overlappning window. Did not make a difference. Whenever I try to play back in TestComplete it spins for a while and says 'Waiting until overlapped window becomes visible' but then eventually is able to move on without errors. However, we are getting errors occasionally when the test runs through TestExecute in our lab overnight.
Also, I have tried both an OnOverlappingWindow and OnUnexectedWindow event handler, neither of which are being hit by TestComplete while it is spinning and 'Waiting until overlapped window becomes visible'.