Confirmed with nightly build 7e6d096, Mint 17.3, NVIDIA G92 [GeForce 9800 GT].
According to mediainfo, video length is 5s 280ms, which is exactly 125 + 7 = 132 frames, which is what loads in blender.
It also says the audio is 5s 269ms, so it shouldn't even be rounding up the extra frame really...

I was not aware of that option or perhaps forgotten it from years ago! Thanks :)
That's exactly how I was expecting it to behave...

Hi Sergey,

Thanks Bastien, will post on funboard :)

Hey there,

Have noticed this recently too. I can't really use undo now! I have to use an unstable build because the vse scripts don't work in the official, so I'm not sure if it happens in 2.69 official...

Thanks for the detailed explanation algorith!

Yep, VSE strips...!