If you edit a Smart Playlist to change "Match all" to "Match any," and then go back to edit the list again, the Match option has reverted to Match all. If you click OK without changing the Match option, the Smart Playlist will change to reflect Match all.
Solution
If you want to "Match any" of the rules, then edit the Smart Playlist again and choose "Match any" again.
kurly: This is a question relating to dynamic updating of SPL’s using the following criteria (as an example):
•Grouping Contains: .p/a.
•Grouping Contains: ...
this was fixed in 7.6
http://docs.info.apple.com/article.html?artnum=307047