Group Membership is shown incorrectly

Assumption - Using the generated data from GeneratedData.sql

1 - Add a new Group
http://192.168.2.7/drupal/civicrm/group?reset=1
http://192.168.2.7/drupal/civicrm/group/add?reset=1

Group 2
Description for Group 2
Continue but dont add any members to Group 2.

2 - Back to browse groups
Show members of Group 2.
Shows No members.

2.5 - Add a new contact Foo Bar

3 - Goto Main Search Page
http://192.168.2.7/drupal/civicrm/contact/search?reset=1

Search for Foo Bar

4 - Select Foo Bar (checkbox ticked) and choose action of "add contact to group".
submit action

5 - Select Group 2 and click to add Foo Bar to Group 2.

6 - Back to SMOG for Group 2.
Shows one member. Foo Bar

7 - Back to search contacts and list all contacts.
Select any contact except Foo Bar

8 - View Contact (Groups tab)
Shows membership in Group 2 which is incorrect.