Index: taxonomy_batch_operations.module
===================================================================
--- taxonomy_batch_operations.module	(revision 60)
+++ taxonomy_batch_operations.module	(working copy)
@@ -219,6 +219,10 @@
         }            
       }
       if ($form['#page_entries']) {
+        // hack to make this work - add all posted values as legal choices
+        if (empty($terms) and !empty($form_state['post']['terms'])) {
+          $terms = $form_state['post']['terms'];
+        }
         $form['terms'] = array(
           '#type' => 'checkboxes',
           '#options' => $terms,