Instead of using padding, use margins. So like this:
<ProgressBar
android:id="@+id/progressBar1"
android:layout_width="wrap_content"
android:layout_height="wrap_content"
android:layout_gravity="center"
android:layout_marginBottom="10dp"
android:layout_marginTop="10dp" >
</ProgressBar>
EDIT: The issue is this in the horizontal linear layout:
android:layout_height="50dp"
The progress bars in gingerbread were bigger which means that you are forcing it to squish itself hence the warping. Instead use wrap_content.