I am having the same issue. I noticed it more because my website was originally on Joomla 1.5 but I recently changed it over to 1.7.
Here's how I got around it (and it works for me because I can use more than 1 user list on my site).
1 - set up a Menu item - we'll call it UL1. Set it up as a "User List" item and don't worry that it says LOGOUT ACTION. It will probably be set up to "Public by default. Make sure it is.
2 - set up a user list - call it testlist1. It will probably be set up to "Public" by default. Make sure it is.
You should be able to click on the menu item and get a searchable user list (provided you set up the fields to be searchable).
In my case I need my lists to be for registered users only. Simply changing both the menu item and the user list over to "Registered" didn't work.
So...
3 - set up a 2nd menu item - call it UL2. Set it to "registered"
4 - set up a 2nd user list - call it testlist2 set it to "registered"
At this point, when not logged on to my site, I can see the UL1 and search it. And when I log on as a registered user and clicking on either the UL1 or UL2 menu items I can see both lists. HOWEVER (and this is kind of neat) I can only see on at a time BUT I get a nice little drop down menu to switch between them.
I went back and tried unpublishing the first user list (testlist1) because at the time I didn't think I would need 2 lists. Both lists went away. boooooo! But on immediate reflection, I decided I could use two searchable lists.
5 - switched UL1 and testlist1 over to "registered" and it worked.
I literally figured this out 20 minutes ago and haven't played with much to see where it takes me but if I run into any major issues I will post here. Ultimately, I think it will depend on the function of your website about what's best.
btw...I think this issue a bit more than "cosmetic" considering how great the CB worked with Joomla 1.5. I can't say for sure it is a Joomlopolis issue or a Joomla issue.
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NEXT DAY
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So I'm rocking two menu items and two user lists and one drop down menu. Whichever menu item I clicked on resulted in showing me the same user list regardless to which one I thought I had associated it to. So I had to use the drop down menu to switch back and forth.
Went to List Manager and set the other user list to DEFAULT. Went back to menu items and now which ever one I clicked on went directly to the DEFAULT user list. So, as I mentioned before, one of those lists was public so I made that one DEFAULT. Logged out of my website, clicked on the Menu item that appeared for public (the other was for registered users only as described above) and only the DEFAULT list showed and the drop down list did not.
Got to thinking...and it worked...deleted the registered menu item and renamed the public menu item to something more general LISTS. Now when I am in public mode I see only the one menu item and only one user list. Then when I log on, I still only see one menu item but now have the drop down to choose the other list.
Could cause some confustion to your users but I guess you have to drop in a note that says once you're logged in you get additional access under the LISTS link on the homepage or whatever..
