I called AppleCare about this, since it is happening on two covered machines. Apple told me that it was my software that is not compatible with Rosetta. I'm running Office 2004, with the very latest updates, FMPro 7, QuickMail 3.5.3; and a 4D timing program called Brief Encounters. I can run several of these, or any one at a time and get the same results... that is ANY of the Office apps (Word, PowerPoint, Excel), or any one of the others. So what Apple is telling me is that ALL of my PPC software is incompatible with Rosetta. Oh Yeah? To that, I say, nice try, but what a TOTALLY chicken sh** response.
I am going back to Leopard for now on both machines that Snow Leopard is installed on, and making sure that I post everywhere this problem is mentioned. The response from Apple is very much a Microsoft kind of response,... after so many years of dealing with them, I was expecting MUCH more. Until I hear from Apple or from someone else that this problem is solved or at least solvable, I intend to never install Snow Leopard again. I feel VERY sorry for those buying new hardware that are stuck with this obviously flawed OS.
P.S. The problem always occurs when I am editing text in any of the programs listed.