When debugging issues such as this, it is often useful to go into the Report Resource Designer and change the background color of some of the main sections of the reports and subreports to all different colors to see more clearly which sections are positioned where and how big they are. This will probably help. In your case, the section that the VBScript is coloring gray is not big enough - check its width in the designer, or maybe some other section is covering it white.
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