Implementing group based ignore - ejabberd refusing

I have just done a new setup of ejabberd intended to replace my old  
one. However, I cannot get group based ignore to take on the new server.

I am entering the following stanza using Psi's XML console:

<iq>
   <query xmlns='jabber:iq:privacy'>
     <list name='foo'>
       <item
           type='group'
           value='Ignore'
           action='deny'
           order='1'>
         <message/>
         <presence-in/>
         <presence-out/>
         <iq/>
       </item>
     </list>
   </query>
</iq>

ejabberd's response is:

<iq from="[email protected]" type="error"  
xml:lang="en" to="[email protected]/Lounge">
   <query xmlns="jabber:iq:privacy">
     <list name="foo">
       <item action="deny" order="1" type="group" value="Ignore">
         <message/>
         <presence-in/>
         <presence-out/>
         <iq/>
       </item>
     </list>
   </query>
<error type="modify" code="400">
<bad-request xmlns="urn:ietf:params:xml:ns:xmpp-stanzas"/>
</error>
</iq>

I have three users in the ignore group already.

Am I doing something wrong or is ejabberd or psi? Both are on Debian  
squeeze amd64.

-- 
Phil Reynolds
email: [email protected]
Jabber: [email protected]

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