We've been dealing with the problem of labels exported from ArcMap to AI dropping the last letter due to the text path being slightly too short for years. There are workarounds to this and in the end it is not a big deal.
As far as I can tell, 10.1 (SP 1) has introduced a much more serious problem: the first letter is being dropped from many text-on-a-path labels, and it isn't just hidden, it is completely missing. I've run several experiments using different annotation databases, different MXDs, different fonts, running on different machines, etc. It seems to be a consistent problem, and unique to 10.1. Luckily I still have access to 10.0, but as far as using 10.1, this is a deal breaker for us.
Has anyone else noticed this or am I totally missing something? Any solutions?