CS2 - Smart Objects ignore clipping masks

Well, I just got my copy of CS2 in the mail maybe 30 minutes ago. I have to say that Bridge is worth the price of the upgrade alone.

But, I've come across a behavior in Photoshop CS2 that doesn't seem right. If you take 2 layers, with one clipped to the other, and then group them into a smart object, you lose the clipping mask. I can't imagine this is intended behavior. Is anyone else experiencing this?

This is intended behavior (well, really: unavoidable behavior) -- when the layers are copied to the smart object, we can't always keep the clipping group relationship intact.
Sometimes we can, but many times we can't.

Thanks for responding, Chris.

So I'm stuck recreating those clipping masks any time I want to use a Smart Object? Because I'm trying to find a case where it keeps the clipping mask intact, but I can't find one.

is this related to my issue in the forums regarding smart objects and Layer via Copy/Cut? I used to have Magic Wand (set st 255) select an underlying layer, to cut out a overlayed layer to the same measurement. Won't work with Smart Objects, it's doesn't have the option available when I right click inside the selection.

Wondering if this is related?

Dan - no, those have nothing to do with each other.