I won't pretend to understand what KR was trying to do. He surely doesn't understand what I do, since my settings are so "foolish" to use his term.
Did you switch the group dynamic settings, etc, as suggested above? I think that the reason you get a red rectangle around the entire frame is that you have selected a full auto mode, in which the camera picks from any sensor. This is different from the number of focal point options. Live View is "fine" because it uses an entirely different mechanism than the main AF system.
_____ Brian... a bicoastal Nikonian and Team Member
My gallery is online. Comments and critique welcomed any time!