IK/FK Switching Bug?

I have tried to look into my IK/FK switching problem but I need help. I am not sure whether this is a bug or not. When I move the root bone, thus moving the character, the IK/FK switching reverses or becomes broken. The IPO is driven by a driver bone’s Y rotation. Here are the steps that lead to my problem:

  1. Test the IK/FK setup by moving Hand.L bone around with switch H_IPO.L(left hand switch) being moved to IK and FK positions. Everything works normal.

2.Move the root bone along the Y/X plane so that the location is at -5.00 LocY and -5.00 LocZ.
http://www.pagodaproductions.com/error/IKFK02.jpg

3.Test the IK/FK setup again by moving Hand.L bone around with switch H_IPO.L(left hand switch) being moved to IK and FK positions. The IK/FK switching either does not work or is reversed.

http://www.pagodaproductions.com/error/IKFK04.jpg
http://www.pagodaproductions.com/error/IKFK04.jpg

The blend file is here:
http://www.pagodaproductions.com/error/Delder%20Rig%20v1.02_problem.blend

Larger versions of the pictures are here:
http://www.pagodaproductions.com/error/

I appreciate any help you all can give.

Thanks,

Mr. R