Comment 1 for bug 833233

Reproduced with Inkscape 0.48.1, fixed in current trunk and upcoming bug fix release 0.48.2.

To work around the issue, nudge both paths (after converting the circles to path) with the arrow keys up and down again (to trigger a path rewrite which will flatten the preserved transformation), or convert the duplicated ellipse to a path _before_ moving it aside.

Linking as duplicate to Bug #518768 “Interpolate disregards rotation/skew state of an ellipse”. Please add a comment here and revert the duplicate status if you don't agree and think these are different issues.