After doing some further investigation it seems that only the first subsite shows this problem. Any other subsite that I have created (e.g. 2nd, 3rd and so forth) works fine. Also checked this out with the prebeta 1 code. Same behaviour, so I guess this counts as a bug on both the prebeta 1 and beta 1-2 code. I think this problem has been encountered too by someone, I could not find the post. Can somebody help?