HDR with K7

I have just (today!) started experimenting with the in-camera hdr on my K7. It seems to lighten the sky around darker edges, leaving paler bands around walls etc. Apart from that I'm quite impressed with the results. Does anyone know what may be causing this and if it's possible to fix it?

PS just uploaded a photo to the gallery and a bit of this lightening can be seen above the wall on the right of the picture.

Hi Jonathan, I find I get more pleasing results using setting one rather than two.
I posted some while back some comparisons between the in camera HDR and a single exposure. See below.

No HDR

[IMG]http://img12.imageshack.us/img12/594/hdroff.jpg[/IMG]

HDR setting 1

[IMG]http://img9.imageshack.us/img9/3425/hdr1p.jpg[/IMG]

HDR setting 2

[IMG]http://img9.imageshack.us/img9/3362/hdr2d.jpg[/IMG]

Thanks, I will try it on setting 1. When I tried it before I did not see much difference between that and having the shadows/highlight setting on.