AIR 3.2 display bug during text (Flash Pro CS5.5 Mac) Anyone else?

I recently overlayed AIR 3.2 for Flash CS 5.5. My app compiles fine and tests on devices fine, but testing via "mobile" setting within Flash seems to be broken. The graphics are all pulled or stretched and clickable hot spots for buttons are off. Worked great pre-overlay.

Anyone else experience this issue? Tips?

I'm on Mac OS 10.6.

Thanks.