"i see there is a problem if you have 3 or more rules and want something like (x AND y) OR z. however, in the case of the poster you could simply specify to add the email if one argument of the two applies."

That's exactly what they meant. The OR (ANY) selection within mail DOES NOT WORK the way it's supposed to when you've selected the 'Entire Message' & 'Contains'. I noticed this problem immediately after upgrading 3 weeks ago and using the smart folders like a filter. By the way the FILTER RULES have the EXACT same problem.

Just as the example of what i did.

I have a smartbox with 7 parameters ranging from Subject, To, From, Any Recipients, (lets say the parameters are AAA, BBB, CCC...etc). Using OR (ANY) of the rules putting the messages into the folder, I end up with 139 emails that have at least 1 of the parameters. Duplicating a parametter, say AAA BUT for "entire message" Gave me 1 result, however, unlike the original posting here, it did NOT meet all 8 parameters. So for me at least, it did not turn the rule into a purely AND rule. Either way, as a purely OR type rule set you should never have reduced results when adding a new parameter to an OR style restriction.

I've already sent a bug report to apple, but maybe someone should send another one so they know it isn't an isolated case. I've already duplicated this problem and several computers.