DBear and Michael. sorry for the late response. Could not get back to my book last week.
However, the good news is that I figured out how the animation was getting messed up; but not why! There were two timelines, Main one and the one that I added. Although, there were no key frames on the Main timeline the starting positions of the objects were incorrect. When I export into widget for iBooks, insert into my iBook, and play the preview - widget was first trying to play the Main timeline, so all the objects would go to their 'incorrect' origins and the next time line would play.
So, I copied the correct animation into another file, into its Main timeline - the angled relocation went away. Happy about that. But 1 issue still remained - when I first click on the button that DBear suggested, there is a delay in the animation - it happens only the first time. The second time, I click on the button, there is no delay. Any suggestion?
Again, sorry for the delay in getting back to you folks.