In C:\!WEB\dev\chipin\web\chipin.com\sites\all\modules\panels: "C:\Program 
Files\TortoiseCVS\cvs.exe" diff -up panels.module
CVSROOT=:pserver:anonymous@cvs.drupal.org:/cvs/drupal-contrib

Index: panels.module
===================================================================
RCS file: /cvs/drupal-contrib/contributions/modules/panels/panels.module,v
retrieving revision 1.10
diff -u -p -r1.10 panels.module
--- panels.module   31 Oct 2006 23:49:58 -0000   1.10
+++ panels.module   8 Mar 2007 23:56:51 -0000
@@ -398,7 +398,7 @@ function panels_edit_form($panels) {
     $order = unserialize($form['content'][$area]['order']['#value']);
     if ($add->area == $area) {
       // say THIS 5 times real fast
-      if ($panels->content[$area]) {
+      if ($panels->content[$area] && $order) {
         $position = max(max(array_keys($order)), max(array_keys($panels->content[$area]))) + 1;
       }
       else if ($order) {

Success, CVS operation completed