From the SRD
Dust of Disappearance
This dust looks just like dust of appearance and is typically stored in the same manner. A creature or object touched by it becomes invisible (as improved invisibility). Normal vision can’t see dusted creatures or objects, nor can they be detected by magical means, including see invisibility or invisibility purge. Dust of appearance, however, does reveal people and objects made invisible by dust of disappearance. Other factors, such as sound and smell, also allow possible detection.
The improved invisibility bestowed by the dust lasts for 2d10 minutes (1d10+10 if sprinkled carefully upon an object).
Caster Level: 7th; Prerequisites: Craft Wondrous Item, improved invisibility; Market Price: 3,500 gp; Weight: -.
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I'm of the school that a higher level spell can detect an invisible person.
See invisibility just by it's name should be able to detect invisibility. But because improved invisibility is a higher level spell, then in my game, I allow people to see improved invis with see invis.
True seeing from the srd states "The character confers on the subject the ability to see all things as they actually are. The subject sees through normal and magical darkness, notices secret doors hidden by magic, sees the exact locations of creatures or objects under blur or displacement effects, sees invisible creatures or objects normally, sees through illusions, and sees the true form of polymorphed, changed, or transmuted things. Further, the subject can focus her vision to see into the Ethereal Plane. The range of true seeing conferred is 120 feet."
Meaning, They can see things as THEY are. A person coated with a dust of disappearance would probably look like a guy with sparkling dust all over him while everyone else don't see him.
Also True seeing is a CL5 or Wiz 6 spell. Higher than improved invis.
Glitterdust is a level 2 spell and it is not a detection spell but a conjuration spell. That's a plausible way to detect invisibility. It doesn't cancel the dust of disappearance but adds a coat on the invis person and we see an outline.
By the same token, lock the doors and flood the room and you can see the invisible person (watch The Shadow, with one of the baldwins. he was trapped and was going to get drowned but we still see where he is walking around in until he removed his cloak).