Anyone else seen this?

Yeah, but with my wma files. I noted it in the other thread and then realized I should have stuck it here instead.

Same behavior as you're describing, only with wma files. mp3s work fine.

This threw me for a loop at first because the cross fading seemed to only be working intermittently. In fact, the first few files I tried were wmas, so I really thought the cross fading wasn't that great (since the effect I was getting was a fade out and an abrupt entrance in). Finally I hit my mp3s (the bulk of my collection) and started hearing true cross fading. It took me a while to figure out exactly what was going on. Since my wma's comprise < 1% of my collection it shouldn't be too much of a problem to re-encode them if that's necessary.