Have you reupdated? I did a second update specifically to address that issue, as I changed how the flagging worked.
I had updated right after the post over at the All Hacks thread indicated there was an update for it. Was there another update after that I could have missed? I did just notice that the one in the moreawesomethanyou.zip file and the bathroomusesyou.zip file don't have the same time/date stamp. One shows 9:07 a.m. on 9/17/08 with a file size of 53,775 bytes and the the other shows 6:59 p.m. on 9/17/08 with a file size of 53,774 bytes. I'm using the one with the 6:59 p.m. time stamp now (which is in the moreawesomethanyou.zip file) and will let you know if I see the loop at all again. DIdn't see it over about 2 hours of play right before posting this.