I'm afraid I can't describe the problem more precicely than 'it doesn't work'.

I created a new template and context to demonstrate this issue. I left it as P2 
because it doesn't affect the IOOS prototype (I chose not to use this widget), 
but it is still important.

To reproduce the problem:
- go to: http://www2.dmsolutions.ca/msapps/chameleon-1.0.4/cwc2.php?
template=http://www2.dmsolutions.ca/msapps/ioos/panmap_test.html&context=http://
www2.dmsolutions.ca/msapps/ioos/panmap_test.xml
- zoom in (you actually don't have to zoom in, but you can do it anyway)
- use the panmap tool to drag the map
- you'll see that it didn't work

If you zoom back to full extents you'll see another problem.

BTW, the problem still exists in 1.0.5