Yes, the problem is only occurring with this specific PHC texture add-on and it is only happening to Nykta. I have loaded several other hairs that I have the PHC add-on for an all of them behave normally. I have never seen this sort of screen in the Material Room before.

I am running Windows 7 64-bit Ultimate edition and my content is all installed in external Runtimes on a partition on my hard-drive. The PHC add-ons are in the same Runtime as the Nykta base product. Comparing the version number on SM's page and the version number of my Poser, yes I am running the most recent SR.