I've got a similiar problem. As I uncheck the location bar, it goes away. But when I logoff/logon, the location bar is there again. Any ideas?
Finally solved the problem. In my case it was not Chinchilla but Bongos causing problems. Somehow the bongos minimap frame and Chinchilla are interacting with each other, so you also have to turn off the location bar in the bongos minimap frame, and it won't show up any more.