Sorry for late reply. . . . .
It WORKS in all modes!!!!
Three days after I sent Zacuto the codes they requested, their engineers sent me a custom made firmware update to solve the problem. Talk about customer service
! They asked me not to post the upgraded firmware as it is a beta for me to test on the K5. They indicated the official release, with the Pentax fix, will be available on the Zacuto web site in 1 to 2 weeks. Below are some screen shots of the EVF in different K5 modes. The EVF has much higher resolution than the K5 screen. They pictures below look fuzzy due to movement & poor focus with my cell phone. When the EVF is viewed with the Z-Finder, focusing is a dream.