Protected Content Category Bug

I seem to be experiencing a major bug with protected content. Although none of the posts actually reside in a protected category posts are not able to be filtered by category unless logged in.

If you visit the following page: http://www.hornsandhooks.com/category/tv/

You'll see that all posts are listed instead of just showing posts in the TV category. Even though none of the posts are protected, Protected Content seems to be disabling any filtering unless a user is logged in.

If protected content is disabled this is immediately remedied...

Any help would be greatly appreciated!
-Jared