Copy/Paste action not working

Has anybody else seen this? I cannot get the Paste command
to work no matter what key/menu/toolbar combination is
used.
I've enabled debugging for IDEA and I can see that the
command is intercepted by the ActionManagerImpl but no
text is pasted into the active editor window.
Further, I know that the copy command was executed and
the text copied to the undo buffer - it is shown in the
log, as well as the multiple paste stack window.

However when I use the multiple paste window to paste the
first paste fragment, I can issue the paste command again
(Ctrl-V) and the fragment is pasted as you'd expect.

Very frustrating!

Started for me in build 2206, but I no longer have
previous builds so I don't know whether the same problem
existed earlier.

My setup is a fresh WindowsXP installation and
IDEA build 2218 (I installed 2206 using the installer and
following eap version by unzipping the package).