Please tell me a fix is on the way. I have been suffering with this bug since PS-CS5 was released.
The problem is that when working with smart objects and transforming them, eventually the coordinates of the transform tool's bounding box becomes reset to the top left corner of the image. The smart object could live anywhere else on the image. It is extremely frustrating because once this happens, the only way to 'fix' it is to rasterize the smart object. After the rasterize, the transform box is appropriately located around the layer's contents vs the top left corner of the image.
There are any benefits to working with smart objects but once this happens, all those benefits are completely void.
CS5 has been out for a LONG time now... and there has yet to be a fix.