County field value missing in User Account profile edit mode

On a new 4.2.7 installation, I uploaded the counties to the civicrm_county table, checked county in the address settings, and added the home county field to the bottom of the Name and Address profile.

I went to a Drupal User Account, and selected to edit the Name and Address profile. I selected United States, Texas, and Austin, and hit save. I got a positive message "The changes have been saved.", but the county field showed 'select state'.

I went back to the view tab, and it correctly displayed 'Austin' in the county field. But when I clicked on the edit tab again, it showed 'select state'.

I was able to reproduce this on the demo site: http://drupal.demo.civicrm.org/user/4.

The same profile included in a CiviCRM Contribution page seems to work fine, and shows the county value correctly.

The same profile does have issues, however, when viewed in edit mode on its own, where both state and county were not displayed, but interestingly the state select options were for Australian states (even though the Country value was United States). This may be a separate issue:
http://drupal.demo.civicrm.org/civicrm/profile/edit?gid=1&reset=1

I have marked this as Major, as this field is a key field in a client's membership process, and they are unable to get their members to update this field in their User Account profiles. I haven't yet found an easy workaround.