Hi,
1. Well, it is very hard to tell, without seeing the configuration on-site, but I suspect that the product cusotm post type might not be selected under the General Options -> Sources panel, that is the most likely issue.
2. It could be the box shadow around the outer container or something similar. Try this custom CSS, it may force the shadow to disappear:
.asp_m_3, .asp_m_3 .probox {
box-shadow: none !important;
}