After completing 1st Quest and subsquently starting 2nd Quest, Link dies as soon as he appears on the screen.
The same happens when completing 2nd and starting 3rd.
This DOESN'T happen if you use the ZELDA/ALPHA method of loading 2nd and 3rd.
Link dies when completing 1st > starting 2nd (b492)
Bug remains in b500.
Bug still present in b509.
I think this bug is fixed in the next build.