preview-latex, Fold Mode problem in AUCTeX 11.54

Please excuse me if this is a known problem.

When I am using preview-latex together with Fold Mode, some of the
displayed equations are displayed twice in the buffer. The problem can
be easily demonstrated using the file "circ.tex" that is provided with
preview-latex-0.8.1.tar.gz.

1. Open the file "circ.tex" in gnu emacs.

2. C-c C-p C-b to turn previews on for the entire document.

3. Scroll down to equation (1). It looks OK.

4. C-c C-o C-f to turn on Fold Mode

5. C-c C-o C-b to fold the entire buffer.

6. Now look at equation (1). It shows up two times.

7. C-c C-o b to show all folded items

8. Equation (1) is back to normal.

I love AUCTeX, and I want to send a big MAHALO (Thank You) to all of
the developers and maintainers who work on it. Your work is very much
appreciated!

Aloha,

--George Wilkens

George Wilkens                | Web: <http://www.math.hawaii.edu/~grw/>
Department of Mathematics     | E-Mail:    <mailto:[email protected]>
University of Hawaii at Manoa | Phone:     (808) 956-4669
Honolulu, Hawaii 96822        | Fax:       (808) 956-9139

Emacs  : GNU Emacs 21.3.1 (i386-redhat-linux-gnu, X toolkit, Xaw3d scroll bars)
 of 2003-05-22 on porky.devel.redhat.com
Package: AUCTeX 11.54

current state:
==============
(setq
 window-system 'x
 LaTeX-version "2e"
 TeX-style-path '("style/" "auto/" "/home/grw/texmf/bibtex/bst/style/"
		  "/home/grw/texmf/tex/style/"
		  "/home/grw/texmf/bibtex/bst/auto/"
		  "/home/grw/texmf/tex/auto/"
		  "/usr/share/emacs/site-lisp/auctex/style/"
		  "/usr/local/var/auctex/")
 TeX-auto-save t
 TeX-parse-self t
 TeX-master nil
 )