Distribution lists in 7.1.30719.0 not syncing correctly

Using version 7.1.30719.0 I create a distribution list which I can use correctly from within em client.     In prior releases, the distribution list  was synced with the gmail server and the generated server entry was a list of linked urn values, one for each member of the distribution list.  In the latest version the distribution list entry appears to be a regular  contact entry with multiple alias email addresses.   If I then use gmail from the web, and start typing one of the contact names in the distribution list, rather than the true friendly name for the contact displaying, I get the distribution list.

Please either explain how distribution lists are now meant to work, or reset the behaviour to the old working system