FuzzyYak - I have exactly the same problem. By setting the 'display:none' property in the CSS class, the popup never displays when it's activated.
To combat this, I ran a script at the bottom of the page to change it's CSS style to a style that doesn't contain the 'display:none'. Unfortunately, you also need to set a timeout to run this script - doing immediately doesn't do anything. Here it is:
1 <script language="javascript" type="text/javascript">
2 function fnSetClassName(sID, sClassName)
3 {
4 document.getElementById(sID).className = sClassName;
5 }
6 setTimeout("fnSetClassName('Panel3','modalPopup_Show')",100);
7 </script>
It's a bit of a work-around, but it does work. If anyone else has a better way of doing this I'd appreciate their input!! 