I have opened a ticket about this at getsatisfaction, however, as no one else has reported it as a bug, I was wondering if anyone else here has seen this problem.
I can eat once within an instance of the game, then not again until I 'quit to title' and return. I have tested this with cooked ham and bread, and it appears to have started at 1.2.6
Could this be a corruption in one of my files, or is someone else able to replicate this bug?
EDIT I am playing Single Player Survival