In and Out points look very similar to CS5.5 to me. The selection is marked with a green tint. Maybe I'm not visualizing what you are seeing. Can you post a screenshot of what you are seeing?
It is now working as per previous versions .
Kind of weird and I have no idea why it started working as per design.
Perhaps transport controls were hidden and that threw you off? Anyway, glad it is working as designed.
Transport Controls were showing and I also tried with the Time Scale showing as well.
What ever... it works now and I am happy.
Just got a bit of a fright initially