[jQuery] removeClass not working correctly with recent versions of jQuery

[jQuery] removeClass not working correctly with recent versions of jQuery

Hi jQers,
Can anyone confirm my observations that removeClass is not working
correctly in recent (latest) version of jQuery? I have set up a test
case to show the problem.
The thing is, when I update an experiment I did a month ago to the
newest version of jQuery, removeClass is not longer removing a class
from a div when it is clicked. The test case provided is a stripped
back version of my project and I have two otherwise identical
versions for you to look at, the only difference between them being
the version of jQuery used.
I have provided links between the two cases but here are both links
anyway.
How it is supposed to work - note the alert result on load and after
clicking the coloured square. Only one class at a time.
http://users.tpg.com.au/j_birch/removeClassTest/testOldVersion.html
How it doesn't work with latest jQuery - note the alert result after
clicking the coloured square. Two classes remain.
http://users.tpg.com.au/j_birch/removeClassTest/testNewVersion.html
I thought I should bring this to your attention John, as I know you
recently mentioned that you were looking at another removeClass bug.
Thanks for your time and all your awesome work with jQuery.
Joel Birch.
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