BUG #5202: Rule affecting more than one row is only fired once with LIMIT 1

The following bug has been logged online:

Bug reference:      5202
Logged by:          Marcel Wieland
Email address:      marcel.wieland@fondsnet.de
PostgreSQL version: 8.2
Operating system:   Linux
Description:        Rule affecting more than one row is only fired once with
LIMIT 1
Details:

BEGIN;

-- Create testing Tables
CREATE TABLE footable (
    name char
);
CREATE TABLE bartable (
    foo char
);

-- Insert testing Values
INSERT INTO footable (name) VALUES('a'), ('b');

-- RULE with LIMIT 1
CREATE OR REPLACE RULE foorule AS ON UPDATE TO footable DO
    INSERT INTO bartable (foo) SELECT name FROM footable WHERE name =
old.name LIMIT 1;

-- Query fires Rule
UPDATE footable SET name = name;
-- Result
SELECT * FROM bartable;

-- Reset
DELETE FROM bartable;

-- RULE without LIMIT 1
CREATE OR REPLACE RULE foorule AS ON UPDATE TO footable DO
    INSERT INTO bartable (foo) SELECT name FROM footable WHERE name =
old.name;

-- Query fires Rule
UPDATE footable SET name = name;
-- Result
SELECT * FROM bartable;

-- Cleanup
DROP TABLE footable;
DROP TABLE bartable;

ROLLBACK;