I posted a reply here http://communities.ptc.com/message/151275 where I modified your part file to place the first feature of the pattern. Looks like "pattern along curve" works most predictably with an open sketch, and the feature must be placed on the end of the curve.
if u look at 4:26 u will see an arrow that the start point of curve if u want to follow curve u hv to start from there... u can place a point and put hole on it then that will work....
Thanks very much. We just ran into this problem while trying to make tractor treads in Cad Class. This will be a great fix for us. Also thanks for speaking on the video. Lots of Creo videos on Youtube that are great for some I guess, but following a speeding mouse to some annoying canned pop music track doesn't work for me.