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SharePoint Designer code preview does not reflect actual output

I have had multiple issues with the stability of SharePoint Designer (2010) but one in particular is vexing. Example: A change is made and the output is as expected in the code view of SPD. When saved ...
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ddwrt:IfNew doesn't work in SharePoint Designer 2010

I used to use the ddwrt:IfNew in SP 2007 to show if docs or items are new but trying the below doesn't work. Any ideas.... <xsl:if test="ddwrt:IfNew(string(@Created))"> <img alt="" ...