More then one level deep, when used with Menu Block

I am finding it a bit hard to determine wether or not this module allows mini panels to be attached to sub-menu items. The admin UI allows for panels to be attached onto any menu item, however on the front-end side only the panels attached on the top tier (1st level) items renders a proper panel. The panels attached to 2nd level menu items render an empty box!.
I should note that I am using the menu block module, with a two level deep navigation. Also another odd thing I have noticed, if all panels were located only on 2nd tier and not 1st and 2nd like I currently have done, no minipanels are rendered at all (even the empty ones).
Can someone please confirm they have managed to get this to work on sub-menu items? Thanks.

The function menu_minipanels_panels appears to retrieve minipanels render for 2nd tier, however it looks like the static $panels variable loses this output.