IPhone :: IOS 4 SMS Badge Bug

Not sure if anyone else is experiencing the same thing I am. I will do my best to explain what exactly happens.When the sms app is "running in the background" and I receive a new text the blue circle icon does not pop up next to the new text and the contact that I received the new text from doesn't shoot up to the top of the list on the main sms page. If I then manually go into that text it will update but the badge on the home screen sms icon will be stuck and will keep going up for every new text I receive. Also the number next to the word Messages on the main sms page will consistently show (1) next to it no matter how many texts I have received.The only way to temporarily fix the issue is to go to the multitasking menu and close the sms app and then re-open it. Once I do that all the texts that I received prior to closing it will then be updated with the blue icon next to it and then can be marked as read.

I tried to search but was unable to find anything similar to my issue. I did read somewhere that having the phone jailbroken and using an app like bite sms can screw up your sms count. I was using bite prior to updating to iOS4. The reason I feel like that wasn't the cause is due to the fact that it happens to every single text I receive. It is not an issue that is linked to receiving texts from one particular person.