rake rails:freeze:gems bug in rails 2.3.5?

Hi All,
  Not sure if this is a bug or expected behavior.
  I've pasted my log below, but basically the first time that I run
rake rails:freeze:gems, I get action* all unpacked into app/vendor/
rails.....the 2nd time I run it? I only get vendor/railties/*

  Something I've done wrong?
Thanks,
Dale

---- log -----

~/cygwin/test$ rake rails:freeze:gems
(in C:/Documents and Settings/Dale Schaafsma/cygwin/app)
Freezing to the gems for Rails 2.3.5
rm -rf vendor/rails
mkdir -p vendor/rails
cd vendor/rails
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/activesupport-2.3.5'
mv activesupport-2.3.5 activesupport
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/activerecord-2.3.5'
mv activerecord-2.3.5 activerecord
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/actionpack-2.3.5'
mv actionpack-2.3.5 actionpack
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/actionmailer-2.3.5'
mv actionmailer-2.3.5 actionmailer
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/activeresource-2.3.5'
mv activeresource-2.3.5 activeresource
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/rails-2.3.5'
cd -

~/cygwin/test$ rake rails:freeze:gems
(in C:/Documents and Settings/Dale Schaafsma/cygwin/test)
Freezing to the gems for Rails 2.3.5
rm -rf vendor/rails
mkdir -p vendor/rails
cd vendor/rails
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/rails-2.3.5'
cd -

~/cygwin/test$ cd vendor/
~/cygwin/test/vendor$ rm -rf rails
~/cygwin/test/vendor$ ls
plugins

~/cygwin/test/vendor$ ls plugins/
~/cygwin/test/vendor$ cd ..

~/cygwin/test$ rake rails:freeze:gems
(in C:/Documents and Settings/Dale Schaafsma/cygwin/test)
Freezing to the gems for Rails 2.3.5
rm -rf vendor/rails
mkdir -p vendor/rails
cd vendor/rails
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/activesupport-2.3.5'
mv activesupport-2.3.5 activesupport
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/activerecord-2.3.5'
mv activerecord-2.3.5 activerecord
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/actionpack-2.3.5'
mv actionpack-2.3.5 actionpack
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/actionmailer-2.3.5'
mv actionmailer-2.3.5 actionmailer
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/activeresource-2.3.5'
mv activeresource-2.3.5 activeresource
Unpacked gem: 'C:/Documents and Settings/Dale Schaafsma/cygwin/test/
vendor
/rails/rails-2.3.5'
cd -

~/cygwin/test$

FYI, just upgraded rails to 2.3.8 via "gem update rails" and same
thing...even on a brand new rails app.
Should you want here are the versions I've got at the moment:
$ rails -v
Rails 2.3.8
$ ruby -v
ruby 1.9.1p378 (2010-01-10 revision 26273) [i386-mingw32]
$ rake -V
rake, version 0.8.7