I just watched Todd Solonz's "Storytelling" on Instant Play and two sections of a sex scene were blocked out with large red squares. Does this happen often, and does it happen with DVD rentals as well?
What you saw was the original theatrical release version. The MPAA originally rated Storytelling NC-17, but Solondz was contractually obligated to deliver an R-rated film. Rather than cut the scene, he superimposed the red squares as a 'f*ck you' to the MPAA and as a message to audiences about censorship. The unrated version without the squares is available on DVD.