Caching namelookup with Security Manager doesn't work as documented

The customer have found an interesting behaviour, that they can
reproduce on both Windows and Solaris with Java 5.0. While at
first this looks like an OS-level name service issue, deeper
investigation suggests this is indeed a Java problem - either
a docs or a functionality bug.

They describe:

-------- Forwarded Message --------

I'm executing the following program:

public class SecMgr {

    public static void main(String[] args) throws Exception{
        while(true){
        InetAddress i = InetAddress.getByName(args[0]);
        System.out.println(i.toString());
            Thread.currentThread().sleep(2000);
        }
    }
}

A) with networkaddress.cache.ttl (java.security) set to -1
B) with networkaddress.cache.ttl (java.security) set to 0
C) with networkaddress.cache.ttl (java.security) set to 0 and
java.security.manager property set (thus installing the default java
security manager)

According to the documentation in the java.security file, case A and
case C should warrant the same behaviour X, where as B should exhibit
behaviour Y.

Behaviour X:
Changing the underlying OS configuration to return different ip
addresses for certain host names, should not be reflected in the JVM
since the entries in the "Java-level namelookup cache" are cached
forever (they are never refreshed).

Behaviour Y:
Changing the underlying OS configuration to return different ip
addresses for certain host names, should be reflected in the JVM since
the entries in the "Java-level namelookup cache" are not cached at all
and are retrieved from the OS each time.

To simulate this behaviour (under Solaris and Windows) the entries of
the /etc/hosts or c:/OS/system32/drivers/etc/hosts files respectively
are adapted while the test program is executed. (Solaris' nssswitch.conf
is configured "hosts: file dns").

Contradicting the documentation in the java.security file, even when a
security manager is installed, case C exhibits behaviour Y.

Isn't this a plain documentation bug in the java.security file or is the
DNS Cache (referred to as Java-level namelookup cache) not behaving as
expected, when installing a security manager?