Yep I covered this in my original post, I've found it's best to choose 'graphics memory' when using FBlit to prevent a conflict and let FBlit do it's thing.
There's zero conflict if you take the extra steps as outlined in the FBlit docs, then icons are rendered in fastram instead. (This was a very common thing to do back when lots of people still used AGA.)
Anyhow, obviously don't do it if it causes problems, though it's always worked great for me.
*edit* Just to quote myself from the other day:
You need to download WBCtrl, add it to your startup-sequence directly before LoadWB:
WBCtrl IMT=ICONFAST
LoadWB SIMPLEGELS
If you
don't do the above, and choose "other memory" in WB prefs, you
will get the nasty lines when opening drawers. Otherwise it should work fine - there will be a little speedup when opening drawers (icons are displayed faster), and icons will use very little chipram.