use with Related Terms catagory feature

Drupal 4.7.2

I'm not sure if this is something you can fix, or if it is just something we have to live with - based on Drupals structure.

I generally don't use Related Terms, but on this site it would be very useful. I'll show you what I'm trying to do - before I explain the end result.

I have set-up a Vocab called Locations (this will carry over into international)

Under locations I have a Primary Term called United States (selected to use Related Terms)

Under the United States - I have Related Terms such as North Carolina, Tennessee and such - with the United States being the Parent

when entering data into a Flexnode created Node and using Free Tagging - I have two options

a) I can enter the Catagory as "United States, Tennessee"
or
b) I can enter Catagory as "Tennessee"

The issues:

option (a) this will give Two Node Catagory Links - one for United States and one for Tennessee. However, Site Map will see two United States Catagories - one for the Related Terms Parent and one for the seperate United States Catagory (and rightly so probably) but it counts the United States twice - once as the Parent and once as a proper Catagory

Site Map (display for option a)

United States (2)
- Tennesse (1)

option (b) I will only get one Node Tax link for Tennessee, does not show the Related Terms Parent as a Catagory Link option. However, Site Map does see the Parent and returns a very nice display to the realtionship - such as

United States (1)
- Tennessee (1)

However with option (b) United States, though it displays a (count) a 'No Page is found" comes back when clicking the United States Link

and then again, maybe there is a better way to use my tools.

Please advise,