dispatch -N not working from command line

I am opening this as a bug that has been confirmed by Noah Campbell over IRC discussion. Here is the link that describes the issue on rundeck newsgroup-

https://groups.google.com/d/topic/rundeck-discuss/fBXkt4wefms/discu...

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I noticed that the "dispatch -N" filters nodes differently while reporting v/s actual execution. This is same behavior on 1.2 and 1.3. Here is how to test-

• Created a new pro project
• Leave the resources.xml as default
• Create another resource file /var/tmp/resources.xml with following contents
• Run the dispatch command to first query with -- dispatch -VL -I '.*' -N /var/tmp/resources.xml and we get the expected results
• Run the dispatch command now to run something remotely -- dispatch -VL -I '.*' -N /var/tmp/resources.xml -- uname -a
• It only runs on localhost!

--- SNIP (resources.xml) --- <?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE project PUBLIC "-//DTO Labs Inc.//DTD Resources Document 1.0//EN" "project.dtd">


--- SNIP ---

--- SNIP (console output) ---

[rundeck@c8771 tmp]$ dispatch -VL -I '.' -N resources.xml -p ex-1 debug: total unfiltered nodes=12
debug: applying nodeset filter... NodeSet{includes={hostname=., dominant=true, }}
ex-00 ex-01 ex-02 ex-03 ex-04 ex-05 ex-06 ex-07 ex-08 ex-10 ex-11 localhost

[rundeck@c8771 tmp]$ dispatch -VL -I '.' -N resources.xml -p ex-1 -- uname -a Linux c8771.example.com 2.6.18-028stab070.14 #1 Create a page SMP Thu Nov 18 16:04:02 MSK 2010 x86_64 x86_64 x86_64 GNU/Linux
debug: total unfiltered nodes=12
debug: applying nodeset filter... NodeSet{includes={hostname=., dominant=true, }}
debug: Finished execution: DispatcherResult{status=true, results={localhost=[local node exec] result was success, resultcode: 0}}
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Here is the