don't know kurgan.....
i've played the demo about a dozen times.....with and without the mods
i've not encounterd this problem. sometimes i have found it overlapping, but if i zoom in and move the target cursor around, i am eventually able to target it.
sorry, but it hasn't been a problem for me
i do have all the graphics turned up to half, not the demo preset, and my screen resolution is set at 1280 x 1024