Hi Dan, with 1.2.5-2, I (reliably) see a (stilly buggy) different behaviour from the one you report.
Create a folder containing the following subfolders: ab oa pa po pq and then quickly type "p", "o" and Enter. If I interpret correctly your report, then - either the first letter is missed, and then "oa" will be opened - or it is not missed, and then "po" will be opened Instead, if I type quickly enough, I reliably open "pa" (that is, _only_ the first letter is considered - although interestingly, I briefly see that "po" was rightly selected). If I type more slowly, "po" is correctly opened. I'm trying to understand if this bug has "replaced" yours or if they are independent. (Ironically, I left Nautilus for pcmanfm precisely for the typeahead functionality!) Pietro