Currently blender's event system just doesn't handle this case.

Added to todo
http://wiki.blender.org/index.php/Dev:2.5/Source/Development/Todo/UserInterface#Events

Whoa, noticed a bug. I'm guessing it's related to this one so I didn't create a new bug item.

The [G] key also does a similar thing when held down in mesh edit mode, though I wasn't able to replicate this with any other objects.
I did find tracking markers do the same thing though.

To replicate

1. Load my hotkey configuration.
2. Select a mesh object and go into Edit mode.
3. Hold down [G] and move mouse around.

also

2. Select a tracking marker.
3. Hold down [G] and move mouse around.

Side note
Older versions, like 2.68a did not have this problem.

Its same issue, blenders main event system doesn't detect key-repeat events, though we do for the game engine.

I wanted to further add that the rapid switching for the "G" key seems to be with the "edge slide" function. Again, this did not happen with 2.68a.

I understand this has something to do with "event system", but until that's resolved, may I suggest adding hotkey entries for trackball rotation and edge slide?

Hi,

The double tap for edge slide and trackball are both hard coded into the translate and rotate event checking code. This implementation of these features is probably not the greatest but it's what was done.

If you remove the G press key (kmi = km.keymap_items.new_modal('TRANSLATE', 'G', 'PRESS') from the transform modal map it should work as I think you want for translation in edit mode and object mode.

Unfortunately, this does not work with the rotate key because not only is it hard coded in the transform modal event handling but also in non mapped event handling of the transform operator. So even if you remove the R key binding from the modal keys it will continue to have the problem. So, one way to get what you want even with this problem is to bind the R press key of the modal map to something that doesn't do anything important while rotating, such as "Select next Edge Slide Edge". This will make sure the key is handled as a modal event but doesn't actually do anything.

Now I think you can get the behaviour you want even though it's a pretty silly method of getting there. Good luck.

Thanks for taking the time to explain, krash. I can't say I understand your instructions.. perhaps it's a bit too technical for me, but I appreciate it.

I am aware that the hotkeys are hard-coded. I listed them for T37520, which suggests removing hard-coded hotkeys altogether.