OK, reporting as promised: Severe problems. I installed .196 right before you announced .197, installing it over 7.2 without reinstalling, trying to avoid the 'can't create playback control'. That much I succeeded in doing.
I can now delete files, no problem. I cannot upload files, period. MJ will immediately go catatonic in a lockup or, as an added bonus, will just crash outright. One can see during the lockup or pre-crash that the .AVI showing the flying-folder animation is getting clipped because of mismatched size on the dialog box(whatever--don't need my folders flying, I need my files transferring).
MJ 8 just isn't stable enough to use at this point. You definitely have some steps forward going on in there, and I really like the file queue for review before pushing the button to upload to the Nomad (see the '2-windows' thread for more fighting about issues of this nature).
Windows Media handles the Nomad transfers and deletions without a problem, so it would certainly appear to be MJ. Windows Media has other problems, such as just sucking as an interface and overall program. I wish I could use MJ for the purpose.