I suspect that there were different runs with different chipset versions. Or maybe a firmware update that killed it. I played with an original-release last year at PAX East and it was flawless for me, I was super pleased with it and immediately added it to my wishlist.
This one may have to go back. My son is completely enamoured of Zelda, but once he finishes the game this may be $400 that has to go back into my pocket.
So sad.