There isn’t really anything for Avid to fix. This seems more like an issue on your system.
Just have to figure out if its operator error or some sort of weird problem that might require a re-install.
Can you take a screen shot of your Effects pallet when you use P&Z so we can see if something is set incorrectly?
As an aside…personally, I prefer to import the image to the bin as the placeholder for the effect, not use filler. If you have ever had a bunch of images lose their links and go offline, you will see the wisdom in it…if you use filler, you pretty much have to rely on memory to rebuild what you did.
For what its worth, though I use Pan and Zoom on my own system, the Moving Picture plug in is really great if you need something more robust and has a more friendly interface.