I've tried 10.3, 11.1, and 11.2. If I rolled back to 10.2, do you think that would make a difference? The project doesn't have anything needed beyond version 9 or 10.
I'm having the exact same problem with Flash CS6 and OS X 10.8.
As a workaround, I guess I could just crack open TransformManager and replace the cursor interaction with the old school method? Issue?
Cheers,
Bryce