Hidden terms still hidden when nodes are added

I am fairly sure I have found a bug in the Directory Module. Though, maybe it's supposed to work this way :)

I have about 30 Taxonomy Terms that I have already created in Drupal. I currently have the "Hide terms with no content" check box checked in Directory. The issue I have is that when I add a new node to the directory, the Term that I associate with that node will not show up on the directory listing until I visit the administrative settings page for Directory and click the "save configuration" button. It appears to me that the module is only updating the list of terms with available nodes when you click "save configuration". Even though you are not actually making any changes to the administrative settings. I would think that the module would automatically know when a term has nodes or not. It doesn't make sense to me to have to keep visiting the settings page every time I add a node to a term that previously had no nodes. Is this something that has been addressed before?

I am using Drupal 5.7