'for name' does not work correctly

[Dave Bodenstab]

Configuration Information [Automatically generated, do not change]:
Machine: i386
OS: freebsd4.8
Compiler: gcc
Compilation CFLAGS:  -DPROGRAM='bash' -DCONF_HOSTTYPE='i386' 
-DCONF_OSTYPE='freebsd4.8' -DCONF_MACHTYPE='i386-unknown-freebsd4.8' 
-DCONF_VENDOR='unknown' -DLOCALEDIR='/usr/local/share/locale' -DPACKAGE='bash' 
-DSHELL -DHAVE_CONFIG_H  -I.  -I. -I./include -I./lib  -I/usr/local/include -O2
uname output: FreeBSD base686.home.org 4.8-RELEASE FreeBSD 4.8-RELEASE #0: Tue 
Aug  3 22:26:49 CDT 2004     root@base686.home.org:/usr/src/sys/compile/base686 
 i386
Machine Type: i386-unknown-freebsd4.8

Bash Version: 3.0
Patch Level: 13
Release Status: release

Description:
        'for name' does not assign positional arguments to 'name'

Repeat-By:
        Create test script:

        #!/usr/local/bin/bash
        echo \> \$#=$#, $*
        for arg
        do
         echo \> arg=$arg
        done
        set -- one two three
        echo \> \$#=$#, $*
        for arg
        do
         echo \> arg=$arg
        done

        Run:

        $ bug a
        > $#=1, a
        > arg=
        > $#=3, one two three
        > arg=