I'm curious if you have any news about this bug, or it has been verified by the team. I mentioned it in a blog post on my new site:
http://xcartguru.com/re-branding-and-a-bug-in-our-beloved-x-cart/ and I am wondering if there is a solution yet?
I had a client call me who was experiencing this very problem today. Also made an updated video showing the exact problem on a linux box hosted by TSS. previously I thought it might be just a Windows specific problem.