Update Delete Wins Conflict (Type 3) Non Convergence Issue

Topology:
Merge Replication (Using Web Sync anonymous pull subscriptions)
SQL 2005 SP1 all nodes

Scenarios:
I have two subscribers both have sync'd and data appears fine. Then one of the subscribers deletes a row whilst the other subscriber makes an update to the same row. The subscriber who deleted sync's first and the row has gone from the subscriber DB and the Publisher DB.

The second subscriber who still has the newly updated row in it's DB then sync's. There is a conflict of Type 3 (Update Delete Wins Conflict) which the conflict resolver states that the last subscriber to sync lost the conflict and the deleted row wins.

However this has caused problems. After sync has occurred the second subscriber still has the updated row in it's DB. The row does not exist on either the publisher or the subscriber where it was deleted. The data has become non-convergent.

I have used the Microsoft COM resolver Last Datetime wins and specified our [lud] datetime column. Now in my understanding in a type 3 situation the winning row (The deleted row) should be propogated to the publisher and subscriber and thus the data should have been removed at all nodes regardless of whether it had been updated or not.

Also to add another twist, the delete was performed before the update (Chronologically speaking) therefore I would assume the resolver should have taken the update to be the winning row (i.e. Type 4 Update Wins Delete Conflict) at least because a deleted row will have NULL in the [lud] column therefore the updated row with a NON NULL value for [lud] would be the winner.

Am I missing something here, or is the resolver not performing as described in Books On-Line

Cheers
Rab