ksh Emulation Not Clearing Envariables

[Chris Jepeway <jepeway@xxxxxxxxxxxxxxxxx>]

I ran into some trouble with ksh emulation when trying to get zsh
to work with a ksh88 script.  Here's a smallish test case that
illustrates the problem:

	emulate ksh

	function e {
		env | egrep ^X
	}

	X=one e <<-EEK
      	Oy
	EEK

	e

I'd expect the output to be

	X=one

Instead, I see

	X=one
	X=one

Without ksh emulation enabled, I see the expected output.
This, with zsh-4.2.0.

This is a bug, right?  If so, should I file a report @ sourceforge.net?

Chris <jepeway@xxxxxxxxxxxxxxxxx>.