Microsoft has confirmed this as a bug which has been fixed for SQL Server 2008. If I, or you, want it fixed for SQL Server 2005 a QFE needs to be submitted.
I'm not sure I like the fact that I need to go another step to get this corrected. Fortunately I was not using this feature successfully and then had it stop after applying updates. If I had been using it I would be very upset that the fix released for 2008 was not made compatible with 2005.
What do you think?