Hate to be the bearer of bad news, everyone.  However, it appears that the inset bug still exists in Blender 2.74.  You can verify this on your own, using the following process:

• Create a standard cube.
• Subdivide the cube once.
• Select 4 faces on the top, and/or 4 faces on the side of the cube.
• Click the inset button in the Toolshelf, not the hotkey.
• Adjust the inset amount, with the Tool Options, and be sure "region" is ticked.

This will be the result:

Notice the crossing edges.  This is obviously incorrect.  The hotkey inset works fine, but it had worked in the last several releases too.

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