Object Seperator Grabber Tool Bug in 8.0.3

[Basevoid]

XP Pro 32 bit Service Pack 3, No IE 8

Just updated to 8.0.3
----Had no issues with grabber tool on 8.0.1cs (most recent cs)-----

Now, when I select a portion of a region to move, and then place the cursor toward the bottom of the region, a new form of the hand appears. It is now a fancy diagonal version of the grabber. (no scissors on it as before) It will not however separate the region or allow me to move my selection. A black line appears vertically where the hand is positioned, when I click the mouse, and follows my movement, but the selected region will not move.
It does however function properly if I have a group of 2 or more regions and I place the cursor near the bottom of the 2nd track down or below. Then it behaves as it should moving my selection where I see fit.
It does not do this on previous sessions.
It will also work properly if I open playlists and vertically highlight 2 or more tracks, but only if I place the cursor in the bottom of the 2nd track.
Now if I separate a region (E) and then grab the block it will move, until I let go of it, then it has been highlighted and will not allow me to move it again unless I click elsewhere and remove the highlight. The strange thing is that when I move a region around in this manner the hand is back to the original shape, kinda square looking hand, no scissors on it, just the regular grabber. Any ideas?

Hate to go back to 8.0.1 over this.