yum-3.2.21-2.fc10.noarch: refuses to localinstall pkg even with --disableexclude=all

I have a pkg excluded in /etc/yum.conf but even though I override this 
exclusion by using the --disableexcludes=all option, yum still will not 
let me do:

yum localinstall --disableexcludes=all  /path/pkg
...
Nothing to do.


If I comment out the pkg in /etc/yum.conf then the pkg will 
localinstall.  This appears like a bug.


Regards,
Gerry