Neil,
Are you aware of any issues with NAD 1983? When changing to or from it, the coordinates change as expected, but the feature will not update. I do not have the problem with other datums, eg between WGS1984 and WGS1972. If multistep projections are used, eg ProjectEx WGS1984 to NAD1983, then to NAD1927 NADCON, then update the feature, the coordinates save correctly.
-- Glenn