set:distinct - exsl:node-set question

How do you use set:distinct with a variable?

ex:

XML:
<objects>
	<object>1</object>
	<object>2</object>
	<object>1</object>
</objects>

XSL:
<xsl:variable name="objectList">
	<xsl:for-each select="object">
		<test><xsl:value-of select="."/></test>
	</xsl:for-each>
</xsl:variable>


<xsl:for-each select="set:distinct(exsl:node-set($objectList))">
	<xsl:copy-of select="."/>
</xsl:for-each>

This prints out the entire list.  I would expect is to eliminate one of
the <object>1</object> elements.  The set:distinct works when I do
set:distinct(//object).  Unfortunately, the real use of this function is
much more complicated than this simple example and an intermediate
node-set is necessary.

Any help would be greatly appreciated.

Chad