"skip when shuffling" issue

I'm wondering about the new "skip when shuffling" option in iTunes 5... does this apply only to when shuffling songs in iTunes, or is it supposed to work when shuffling songs on my iPod? Because it's not. 😟

I've ticked this option for all of my classical songs, but they still turn up now and again when I'm shuffling songs on my iPod.

Is this because

a. This option only applies to shuffled songs playing in iTunes, and not on the iPod

b. This option will only work on the iPod software currently running on the
Nano, and will start to work when Apple release this version for all iPods.

c. It's broke.

My iPod is a 60Gb colour, running 1.2 software included in the June update. Anybody having similar problems, or know the answer?

Thanks,
- c -