Severe glitches with keyframes; animation essentially broken.

Hello everyone,
I have recently updated to the latest release of Blender, and was horrified to discover that the animation no longer functions correctly. When I input keyframes Blender acts perfectly normally. However, when I play back the animation, it goes bezerk. The animation is simply a wheel which rotates 360 degrees around the x axis. However, when I play it back, the wheel rotates 360 degrees around the y axis whilst wobbling wildly by up to 90 degrees on the x and z axis. No matter what I animate (simple objects or posed bones) or how I do so, they glitch up horribly and I am totally unable to rectify it, even with the graph editor. The upshot of this is that the animation functionality of Blender it completely unusable. Obviously, I cannot continue with my work whilst this is occurring, so finding a solution rapidly is a priority. I have installed the latest release on several computer, running both Vista and Windows 7, and the animation is broken in all of them. Has anyone else encountered this problem, or know how to fix it?
Thanks in advance,