Premiere Pro CS4 problem with lion?

I am using Premiere Pro CS4 on an iMac that has just been upgraded to Lion. And when I move any footage or audio the entire timeline starts tripping on acid. Basically, it will leave duplicates and start changing random colors so you can't see where your actual piece of footage is.

Anyone know what is going on with this? I am sitting next to another guy who is having the same issues (in fact the screen shot is from him). So I know it is not just my computer. We have run all updates so now we are stuck as to what to do.

Thanks,

Drumman