[O] CDLaTeX (4.0) not working in Org mode (8.0.3)?

[Omid]

I see the following strange behavior from Org-CDLaTeX (OCDL).

Outside a * heading it works. Inside a * heading (or anything under that) it does NOT work. What can be causing this?

Here is a minimal example:

# Org CDLaTeX (OCDL) works here (at least does not issue an error)
\[
x^2
\]

* heading
** subheading
   # Org CDLaTeX (OCDL) does NOT work here. Pressing ^ (caret) or _
   # (underscore) causes the following error to appear in *Messages*
   # buffer:
   #
   # call-interactively: Symbol's value as variable is void:
   # last-command-char
   \[
   x
   \]
   # Same error here.
   \begin{align*}
   x
   \end{align*}