Hey Alan, I was told by a vendor that there was an issue at some point in the past, but in reality I think he was just saying that to get me to stop asking.
Anyway, not sure if you're working on your projects while they reside on a network but I was having the exact problem you describe... until I did a 'Save as' to my computer's hard drive. Then my panos came out just like they should in Google Earth.
I can't explain why that works, or why I tried it, but it's been working for me since TBC 3.70ish.
I am really curious if my workaround works in your situation. Let me know.