Interesting:
I arrived at this forum after searching for this problem, so it's nice to know its not just my gear that has it.
When I first installed this version of VS (unpatched at the time) and did a quick edit of the material I've posted in a link below, I had no problems: the title didn't cause any issues at all. Unfortunately I think I have deleted the end product as it was just a 'play'.
Since that initial good test I've installed AnyDVD and a pile of codecs and ffdshow to rip DVD material: maybe something in that lot has upset VS?
(The program 'asks' about excluding ffdshow, but it makes no odds to the results). The patch has not helped this issue.
Judging from my clip and that of dalemccl, Panasonic files have a bigger problem than the Canon or Sony, in that the video doesn't recover when it hits the end of a title or transition, it just keeps cycling (but the file and audio continue to move on). The only way to recover stable video is to click on the player's timeline to move to a different point.
I've posted my short bad sample at:-
http://www.megaupload.com/?d=LA2ZBI8T
Not sure if it's been mentioned above, but if the project is rendered in a lesser format (eg mpeg2) all is well.
EDIT: I remmeber that my succesful edit didn't use the 'same as first clip' setting to create the video file. I used one of the disk authoring tools, probably to make a Blu-Ray file. Today I made an AVCHD diisk, and the titles and fades didn't cause the same problem. The video quality though was poor, with degraded detail and sections of the scene 'twitching'.
I'm going to try Power Director 7.