Discovered this a.m. that I am not able to use misc. inv income in '07p as it changes the cost basis to the exact am't of income; this occurred w/an I bond valued at $100/share -- example:
$50 misc inc (category Interest: FRB int to distinguish from _intinc) Market value $1050 Cost Value $1100 Gain/Loss -$50
This still works as it should in '06p. Hope someone else using '07 will try this to see if it works as it should for them.