I have a question in regard to zooming behavior. Prior to upgrading to Mountain Lion, when I was using Command + it will zoom and resize the image. If I was using Command Option + it was only zooming the image without resizing the image.
Now, when I hit Command Option + it zooms the Application window (like zooming the desktop). How do I get back the old behavior?
Same here! You can disable this in System > Preferences > Keyboard > Keyboard Shortcuts. Click on Accessibility in the left column and uncheck the Zoom checkbox. It should take care of your "issue". You can try the other options like disabling Zoom only or Zoom In and Out.