Content Taxonomy issues: merged levels and depth setting not working correctly

This is great work, I'm following form some time, but now it's completely broken on a cck taxonomy filed. If you have more than two levels, all options apear on second level, and strange things happen on choosing from third level (like a non existing 4th level appearing). The cck widget was working some versions ago.

This is something really good, I'm hopping it gets fixed. Sorry I can't be more helpful than this.