Scaling prohibits object movement

I have an object that has been scaled manually in the editor.
Now my code routine to move it in my application wont move it.
Although it does report a change in position value.

Anybody run across this before.
It is like it is now locked due to the scaling.

My solution was to:
Establish an orthogonal camera.
Create a sprite with a bit map proportional to 800x600
Re-position my objects within that space.
I did need to scale my objects slightly with no ill effects.

This is not a solution but rather a work around I know.