Hello,
In another thread it was posted that the shearing distortion that some people had reported when using compositing and transparency effects and transitions had been fixed in kdenlive 0.7.9 SVN and with MLT > 0.5.10. Sadly, it still seems to be present. I am using MLT 0.6.2 and I downloaded and built kdenlive SVN (version 5520) and the problem still seems to occur.
The images below show the result of placing one image on top of another in two adjacent video tracks. To the top image, I have attached both the Transparency effect and the Composite transition (in order to get an alpha channel to make the Transparency effect work). The first image shows the preview window (showing the sheared top image), and the bottom image shows the timeline where this happens. (Note, the images are in the following post as the original form would not let me attach images.)
Here are versions of libraries I am using:
kdenlive : SVN (5520)
MLT: 0.6.2
FFmpeg (incl. libswscale): 0.6.201103092102git
Please let me know if there is any other information I can provide.
Dave

The original posting form didn't let me attach the images, so here they are: