iTunes syncing podcasts to iPod Nano 3rd it shouldn't

I'm having an issue with podcast syncing on my iPod Nano (2nd and 3rd Generations).

iTunes transfers all of my podcasts to my 2nd Gen iPod Nano (and replacement 3rd Gen iPod Nano), regardless if I specify 1, 3, or 5 “most recent” podcasts or even completely disable podcast syncing altogether

How do I know all my podcasts are being transferred?

1. I see that iTunes is copying them during “Sync”
2. The podcasts (almost 3 GB total if iTunes transfers all of my podcasts, under 100MB normally) take up space on my 4GB iPod Nano, preventing me from syncing my music and audiobooks (around 2.22 GB)
3. On my 2nd Gen iPod Nano, illicit podcasts can be found via “Artist”, “Album”, “Song”, etc.
4. I see the podcast files when browsing my iPod using third-party software.

What have I tried to fix this?

1. Closed and reopened iTunes
2. Checked to make sure I had the most recent version of iTunes
3. Checked to make sure I had the most recent version of the iPod Software (1.1.3)
4. Downloaded and reinstalled iTunes (7.6.29)
5. Reset my iPod
6. Restored my iPod from iTunes
7. Reformatted and then restored my iPod
8. Deleted and restored my entire iTunes Library via Time Machine
9. Exported, deleted and re-imported my entire iTunes Library
10. Deleted and re-subscribed to my podcasts
11. Reinstalled OS X 10.5 (“Erase and Reinstall”)
12. Purchased a 3rd Generation iPod Nano

Steps to reproduce:

1. Open iTunes 7.6
2. Delete all podcasts, move files to trash
3. Connect iPod Nano
4. Uncheck podcast syncing and apply settings
5. Subscribe to podcast via iTunes Store
6. Sync
7. Watch as the podcasts are synced to my iPod
5. Confirm using third-party software (or browse to tracks on 2nd Gen iPod Nano via “Artist”, “Album”, “Song”, etc.)

Apple Developer Connection Bug Report 5733581
http://discussions.apple.com/thread.jspa?threadID=1385258&tstart=0 (no responses)
http://discussions.apple.com/thread.jspa?threadID=1385175&tstart=0 (no responses)