Serious problem with 1.1.2 plz help reproduce, report

I didnt use 1.1.2 till yesterday because right on the release day there was a weird noiseproblem that support, even less myself could solve. So I went back to version that works perfectly for me with no issues (1,02) Anyway I upgraded yesterday since wouldnt be able to try daScratch . Since it seem to work OK I decided to keep using it.
However once got to routine beatgridding new songs found out mean, nasty noise issue.
PROBLEM DESCRIPTION.
typical situation- beatgridding
mouse control-vinyl. PLEASE SET THE VOLUME LOW otherwise you might f..up your ears.,
Phones cue button on, play a song ,then left click/ hold mouse and try to align the white vertical line with the mid red vertical............. instead of reassuring snap/click there is kind of more square wave sound, if you nail the perfect spot, where they should be aligned the obnoxious sound will continue till all animals and small children within 100 yards radius drop dead-.... I mean almost.....
Seriously, it makes beatgridding by ear and not by eye impossible since someone must be audio masochist to not get mad hearing that piercing sound ( and since it is exactly where the perfect grid point is, it is mutually excluding situation).
I talked to NI support, letting them hear on the phone made it easier then explaining.
I would really like to help since NI is working on the next version.
In case it could be more helpful I could make short video showing how it all happens. Didnt get chance to check it on a Mac yet. So far it seems independent on driver, soundcard used and/or midi controllers connected or not.
Would be great if more people could examine this issue and report results to NI support