Air 3.0 distorts movieclip on stage

Maybe the potential bug is due to a combination of GPU rendering of assets with air 3.0 sdk, where the assets are originating from Flash IDE?? I am loading the movieclip from a swc(merged into code) which was generated in the Flash IDE. The movieclip contains a bmp (640 x 960)

I'm having the same result when running the AIR debug launcher (ADL) from withing Flash CS 5.5.  I downloaded and overlaid AIR 3.0 SDK per the instructions (http://kb2.adobe.com/cps/908/cpsid_90810.html).  I have a graphics-heavy FLA with the following settings:

Publish Settings

Player: AIR for iOS

Script: ActionScript 3.0

Hardware acceleration: Level 2 - GPU

AIR for iOS Settings

Aspect ratio: Landscape

Full screen

Auto orientation

Rendering: GPU

Device: iPhone and iPad

Resolution: High

Things were fine with AIR 2.7 overlaid, but since switching to 3.0 whenever I click Control > Test Movie > In AIR Debug Launcher (Mobile) I get the same display issue as noted above - the display objects are all pushed up so that the bottom edge is about 200 pixels from the top of the frame, with the last row of pixels stretched down to the bottom of the frame (ends up looking like vertical lines of color).  The buttons that are normally along the bottom, are now partially off frame at the top, however, the mouse clicks for them still register as if they were at the bottom where they're supposed to be.

I cycled through all the different AIR for iOS Settings and it seems that having the Rendering set to GPU is the culprit.  Everything's fine in ADL unless it's set to GPU.

I recall a similar problem with AIR 2.6/2.7 but it was eventually fixed though I don't think Adobe announced it as a bug fix, they just replaced the AIR SDK downloader quietly in the night.

Argh!!!