Banuchi2, the PM override is something I didn't originally take into consideration, so I'll have to look into that since it makes sense the bouncing member should receive the PM regardless of whether or not they can use PMs.
xtazy & nathan, ok i think i found the problem. It seems that the User Datamanager is conflicting with restoring the original usergroupid. I found where the problem is, but it seem sthat a hook where i need one doesn't exist, so i'm going to have to figure out a way to get around it... will look into fixing this this weekend.
For now, so long as you have "Update Member's Usergroup when Processing Bounces?" setting in AdminCP turned OFF, this hack is stable.
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