Hrm. I don’t think you’re having the same problem. I’ve been able to narrow mine down to line 129 of the file wp-includes/functions-formatting.php (in 1.2.2, as I’ve recently upgraded to that). If I comment that line out everything works as advertised, otherwise my webpage stops rendering halfway through the right-side floater (which means no content).
My upgrade to 1.2.2 just reminded me that I never found a solution other than commenting that line out. Any suggestions for further steps to trouble-shoot from a guru/programmer? ;]