tinymce issue after upgrade

After upgrading to 1.61 tnymce now reoves all formatting now matter what. wether its something created with in tinymce or code pasted in from dreamweaver or andother editor everything is stripped bare. Hyperlinks are removed, tables are dumped, no matter what.

 

I have removed tinymce extended and replaced with basic tinymce that come with install package and still no changes?

Any help would be greatly appreciated.

Ade