Smart groups made from searches on event participants don't work in joomla

I did the following on the demo site and my own install so I am pretty sure it is not a configuration problem

I did a search of people who had signed up for the event "rain-forest world cup ..." which resulted in about 6 contacts. from the results I made the smart group "rain". I went to Manage Groups, selected to view members for "rain" and every contact in the system was displayed rather then just the 6 that the search returned. The problem persists when displaying a profile listing limited to that group in the joomla front end (i.e., all users are displayed)