[Google Maps API v2] GeoCode - is bounds parameter ignored ?

Hi,

First, thanks for the great services!

I called geocode without and with bounds of Oregon as the following
http://maps.googleapis.com/maps/api/geocode/json?address=Sherwood&bounds=40.54858440297101,-127.68432815312502|46.891476439567334,-113.42407424687502&sensor=false

In both cases Sherwood, AR,USA was returned. When I call with
Sherwood,OR Sherwood, OR, US is returned.

How are bounds being employed? Is this a bug?

Thanks,
Rich
The call can be found at:
http://www.cafeprojections.com/map/locations/

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