Bjerre, thanks so much for tracking down a solution to this. The command line approached worked perfectly for me.
This is a serious bug, IMO. A potential problem is that the Microsoft Web site offers a general solution to the problem of "invisible" Recycle Bin files that might work but it will result in the deletion of any current files that are in the Recycle Bin. I didn't try that myself but other users could wind up going that route and it might cause them to lose important data. The approach you posted simply makes the files visible again. I think I like one better ;-)
Meanwhile, where's Propellerheads on this? I'm disappointed that they didn't contact users directly about it.