Java Runtime needs to be installed manually, otherwise applications may behave inconsistently
Many Adobe applications are dependent on the Oracle Java Runtime Environment (JRE) for some features to work. Apple recently changed the way it includes Java in Mac OS, and with Lion, Java is no longer preinstalled; it is now an optional install that the user must select.
Since current Adobe installers and applications were built before these changes by Apple, our software anticipates that Java is installed. Adobe and Apple have worked together to ensure that you can install Java at OS install time, or optionally at a later time before you install Adobe applications. At runtime when you launch an Adobe application, you will be prompted to install Java if it is not already installed. If you do not install Java before running an Adobe application, there can be missing or improperly behaving features. If you encounter any issues, installing Java should correct the problems. Corporate IT organizations should take care to preinstall Java (or make sure Java can be installed through their firewalls/security) in order to avoid conflicts with Adobe applications.
If the Java runtime is not installed, some issues that are known to occur include:
Failures to launch
Prompts to install Java runtime when attempting to use the applications
Applications may hang on quit.
For additional instructions for installing the Java runtime see the following document.
How to install the Java Runtime (JRE) | Mac OS 10.7 Lion
Illustrator CS5, Illustrator CS5.1, InDesign CS5.5: Crash reporter doesn’t appear or only appears after long delays (10-15min).
Scrolling behavior opposite of expected
In application scrolling may reach opposite of expected due to "Move content in direction of finger movement when scrolling or navigating" feature. To alter this behavior, deselect the feature at the top of the Mouse section within the System Preferences.
Rosetta support no longer included with Lion
CS2 or earlier versions of Adobe products required Rosetta to run on newer Intel based mac systems. These older versions will no longer be supported as Apple removed Rosetta support with the 10.7 release.
You're right....using system shortcut keys does allow hiding to work. I suppose I will have to just get used to working this way, as it's only a few shortcuts that I'll have to re-learn. However, I shouldn't be forced to have to make this change, so I'm still waiting for a resolution to the issue. I also read your note about desktops, and I started using my magic mouse to swipe to my second desktop whever I need to access the finder or other apps. This works alright if I keep only AE on one desktop, but in practice it's just annoying for me. All I want, and all I suspect everyone else in this thread wants, is to be able to continue to work the way they've been working all along, without having to adopt new practices because of a bug. If hiding were disabled because it conflicted with a new feature for whatever reason, it'd be a different story.
Regarding Premiere, I'm running a 2010 iMac with a quad 2.8 processor. I suspect that you are correct in assuming it's a codec or font issue. In fact, I'm nearly certain it has to do with the codec, so I'll be looking into perhaps transcoding my footage. The point I was originally making is that such problems *never* happened to me with Final Cut on this system using the same type of footage. Or at least they happened very rarely, and when they did they weren't persistent. I will go ahead and clean out my font cache and remove fonts I'm not using, just to be sure that isn't the problem. I really do want to continue using Premiere because I've lost faith in Apple, but at the end of the day, the sotware just has to work.
Was having serious AE performance issues yesterday after installing Adobe Connect (used to watch a webinar) and/or firing up Flash CS5.5 for the first time in my Production Premium suite. Something seriously got screwed up with a shared library somewhere because of one of those two things, and it was messing only with AE. Everything I clicked took about 1-2 seconds to respond. Uninstalled Connect and cleared out my caches using Cache Out X. Fixed the problem.
Do yourself a favor and clean out your caches. And repair permissions.
Wouldn't be surprised if there is a font issue, or a bad driver somewhere too, as Rick suggested. I had a font conflict I ignored (FontBook warned me of) that I believe was causing problems with Photoshop. Uninstalled bad font and it went away. Not a bad idea to double check your fonts.