Logic Pro Loss of fade/slow down/speed up function results.

[eartoyz]

I noticed this in Logic 9 earlier today, and now I get the same behavior in Logic X.
I can use the fade tool to draw a fade out or slow down task, and see the fade on the audio file, but it doesn't have any results. The audio file is not faded out or slowed down.
I am new to Mountain Lion and perhaps i have jacked some setting sideways????

Any help would be grealty appreciated!

 

[mrvinyl]

Check you project folder is saved on your local disc and not on a network drive or USB stick