I also encountered the issue of the stuck seeking dialog in Dharma 3 (10.0-beta3 r34731 on Ubuntu 8.04).
I was able to fix/hack this in the following manner:
In the skin file DialogSeekBar.xml (for example: ~/.xbmc/addons/skin.pm3-hd/720p/DialogSeekBar.xml), I changed this line:
<visible>Player.Seeking | Player.DisplayAfterSeek | Player.Paused | Player.Forwarding | Player.Rewinding</visible>
to
<visible>Player.DisplayAfterSeek | Player.Paused | Player.Forwarding | Player.Rewinding</visible>
If I switch to another skin, the issue comes back, but the issue can be fixed in the same manner in any skin, since they all have their own version of that XML file.
So, either the defect/bug here is that 'Player.Seeking' shouldn't be in that tag, or more likely the problem could be that 'Player.Seeking' is stuck with a 'true' value permanently.
According to the skin documentation (
http://wiki.xbmc.org/index.php?title...FullScreen.xml) 'Player.Seeking' should only return true if a seek is in progress. So the xml for the skins seems to follow the spec.
This was pretty much driving me nuts, so I'm happy I was able to find a workaround. Hopefully the XBMC team will fix the real bug soon.
I posted this reply on the other thread related to this issue as well.