function 	test()
	{
		static $test1;
		echo "BEFORE: $test1 <BR>";
		
		unset($test1);
		
		$test1 = "Hello";		
		echo "AFTER: $test1 <BR>";
	}		

        test(); test();

Output:

BEFORE: 
AFTER: Hello 
-- 
BEFORE: 
AFTER: Hello 

Should be: 
BEFORE: 
AFTER: Hello 
-- 
BEFORE: Hello
AFTER: Hello 

Works fine if you remove the unset();
Works fine in PHP3.