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Santra - thanks! We've reproduced the bug, and it's not related to the sync method. I finally ended up getting it to happen via MobileMe sync. Basically the app mis-handles the case where it thinks the project is overdue and gets a 'no, it was completed before the deadline' transaction from another device that's syncing.

For #2, what is your "in projects, show" setting? If it's set to "remaining" or "all", and you're seeing a sincle copy of the project when you return, you're seeing the intended behavior. When you complete a repeating action, we create a new copy of the project with the updated start/due dates right then. It becomes visible when you tap away from the screen and come back.

If you're seeing this bug, you would see an overdue copy of the project and the new version with the updated start/due dates, sitting side by side.