RT 3.8.1 Problem with "Select One Value" category selection on IE7

I have been trying to work with categoies for a “select one value” custom

I have two categories configured, each with multiple options. When editing
the custom fields in Firefox the options for the category not selected are
hidden from view.
However loading RT in IE7 I see all options for all categories
being displayed no matter which category is displayed.

Has anybody else seen this happen and possibly have a patch/workaround that
could resolve the issue?