The topmost flag doesn't seem to be accepted for child windows. I'll keep it on HWND_TOP (0x0).
The weird thing is that it's actually on top of the controls, only it doesn't get drawn on top. To prove this: when I mouse-over the Preferences button where it should be behind the window, it doesn't light up. I have to move the mouse out of the menu area to make it light up.
Maybe I should try to set the Z-order of the 2 buttons... but how?!