Java 1.7.0_17, OS X 10.8.3
After teleporting to a set of coordinates,
Steps to reproduce:
1. Make sure cheats are enabled (creative helps, too)
2. Teleport to a set of coordinates like 0.0 128 0.0 (X and Z must end in .0, the bug does not occur otherwise)
3. Look in a northwest direction (90 to 180 degrees in F3, or towards smaller X and Z coordinates)
4. Try to place, break, or interact with a block (e.g. open a chest)
What I expected to happen:
Blocks can be placed, broken, or interacted with.
What actually happens:
Blocks to the northwest of the player cannot be broken or interacted with. No blocks can be placed to the northwest of the player. Additionally, using a spawn egg on a block to the northwest of the player has no effect, while using one on an animal to breed it works, but only if the parent has moved since the teleport from step 2.
Moving horizontally (being moved by e.g. attack knockback counts) restores the ability to place, break and interact with blocks and entities until the steps to reproduce are repeated.