Groups link Community dropdown from front page reveals members with member privacy turned on.

Clicking on the Groups link, under Community, on the front page, will show names and photographs of members, even when member privacy is turned on. Granted, it will not allow the profiles to be revealed, but it makes the members Privacy function not totally private to non-logged-in viewers. Is my installation working correctly, or is what I'm seeing what was intended? Might this be something that should be modified?

In the meantime, perhaps someone could tell me how to change the code in navigation.php to disable the Community tab on the front page only, but still active for logged-in members?