This recent article talks about a Gravity Probe B project which confirms that Einstein was not wrong to my bafflement:
http://www.guardian.co.uk/science/2007/apr/15/spaceexploration.universeAccording to Einstein, in the same way that a large ball placed on a elasticated cloth stretches the fabric and causes it to sag, so planets and stars warp space-time. A marble moving along the sagging cloth will be drawn towards the ball, as the Earth is to the Sun, but not fall into it as long as it keeps moving at speed. Gravity, argued Einstein, was not an attractive force between bodies as had been previously thought.