Social Theme Privacy Options Not Working?

From the theme oprions page.

Do you want to enable privacy for all members profile
* only logged in user can view members profile and members directory. 'disable' by default

I dont seem to beable to get the Social Privacy Options to work properly.

I have enabled the privacy feature from within the themes options page and while it seems to be working on the actual profile page it is not working for the directory. Non-logged in people can still access it

Whats the deal?