Group(s) field information is not saved to database when placed on the registration form

Standard CivicSpace 0.8.3 RC 8 installation

The group(s) field does not seem to work as intended. I first noticed this on my dev site, where a 'group' field is on the registration page, but when a new user submits the registration form the group information is lost (i.e. it is not saved to the database.)

As an administrator I went to the drupal administer >> user >> edit section and selected a group for that user then saved, but again the information was not saved to the database.

I then used the civiCRM interface to add the user to a group and that worked.

The hint that there is a problem with the 'group' field can be noticed by going to the demo site, namely http://demo.openngo.org/civicrm/drupal-php5/civicrm/profile?reset=1&gid=6 (login as demo/demo)

I created a search profile that only has two fields (gid = 6). First name, and group.
Without selecting or typing anything just click the search button.
You will see a list of users, but the problem is that the 'group' column is missing... It only shows the first name field only.