I notied that for Firebug 1.10.x there were already fixes added quite some time ago. And in the dist-folder there is is build 2.0.1 available. I tried that out and that seems to make it work with the newer Firebug-API (ability to add an overlay, ...). Using Firebug itself then I can also see that the pp_overlay is added to the HTML etc. but the image doesn't display. Giving that overlay a background-color shows that it's position correctly etc. And the background-image displays as a thumbnail in Firebug (when hovering over the CSS-code) as well. It's just that Firefox doens't want to display it as defined via CSS in property "background". Maybe some security-thing because that image is loaded via a chrome-URL?
Using Firefox 15.0 and Firebug 1.10.3 here.