Hi Bryant,
Thanks for your screen shots.
I was able to reproduce your problem and I have logged a bug report regarding this:
Floating window goes behind the MDI form after hide and show the MDI child form.
You could track the status of the bug fix at the above link.
As a workaround, you could set the visible property as false for the floating form whenever you change the visible property for the form. I have created a small sample to reproduce your problem.
In this attached sample, File menu consist of the following baritems: Open, Show, CloseChildForm and Exit.
Open - It will create a new form, if form does not exist in the MDI container.
Show - It will show the form, If form has been hidden.
CloseChildForm - It will permenantly close the form.
And also I have included some code in the form2 Closing event and VisibleChanged event to show or hide the floating window explicitly. Please take a look at the attached test sample and let me know if this helps you.
Thanks for your patience.
Regards,
Vijay
Test Sample