Sorry for the vague title.  SC 7.0 nightly 2008-01-17, firmware 1r1495, hardware beta.

Here's a plugin which demonstrates the problem:
http://inguzaudio.com/Data/JiveMenuTest.zip

In Jive this registers a node ("Top Menu") and populates it with four items.  Scrolling up and down this top menu's four items behaves fine.

When you "go" one of these items, the response is created by CLI;  this adds a submenu, with four items.  But this submenu doesn't scroll properly.  Turning the wheel anticlockwise does move upward through the menu items properly.  But turning the wheel clockwise doesn't move through the menuitems (except it *sometimes* does - very intermittently - if you scroll the wheel fast).

There's an audible click but no movement of the menu highlight.  The click seems to indicate that the scrolling logic is actually happening... and when you press "go", the next sub-menu's title shows that you did actually "go" on the menuitem even though the selection didn't scroll to it.