Strange shape shifting, and I don't know what is doing this?

Question

Ok, as an experienced illustrator user I have to admit that I am stumped on this. I have been using CS5 for 3 months now (upgraded from CS3) and I notice many new features. But, as I was doing a basic drawing for an icon I noticed that my image was getting distorted when I moved it around the screen after scaling the object. This is what I am doing, (1) used the pen tool to draw icon, (2) converted the image to outlines, (3) used pathfinder to merge all shapes, (4) deleted unwanted shapes, (5) moved drawing to different position on art board, and noticed first few vector points moved, (6) scaled the object and moved it to another position on the art board and it really started to distort image.
(Note that I am moving the object using the solid arrow tool and I am not clicking on individual points when I move the image. I also cut and paste this image into a new document and it did it again. That is why I don't think it is a corrupt doc but a setting issue.)
I included some screen images of what I described happening with the image shifting its shape. I thought a setting was causing a problem, like snap to "pixel grid" or some other new feature that I am not aware of coming from CS3.
I hope I am giving enough info to help solve this issue for me. Thanks

Answer 1

Thanks for the fast reply. I found the "Align New Objects to Pixel Grid" was selected in the Transform Panel. I unchecked this and it looks like the solution. I checked the Illustrator Prefs, under Guides & Grid and didn't find a similar box. I only found show grids and color choices for a grid. But, I think the transform panel is what I needed.
Out of curiosity, I went to look at the "New Document" settings and found the check box under the advanced panel. I don't know how that was turned on, but that must have been the default for all of my current new documents. This preference doesn't just activate depending on the "New Document Profile" selection does it? Let's say if I chose "Web" as the profile, does this automatically select?
Thanks for your help, very much appreciated.