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Turn off Align to Pixel Grid in the Transform panel. This can also be turned off in the New Document dialog.
Nice it worked.
But what a dump setting.
This setting should be off on default
This setting is off by default for all new document profiles except "Web" and "Flash Catalyst". If you want to turn it off by default for those as well you can overwrite them.
Thanks. I figured as much.
had some old CS4 files that had web profile, so it was wierd when stroke didn't behave in new version.