how are multiple currency transactions supposed to work?

[greg]

On Fri, 2003-10-24 at 00:27, Derek Atkins wrote:
> greg <gmott at ntlworld.com> writes:
> >   is it intentional that it wants
> > to add an adjusting split even after i have adjusted the exchange rate? 
> > the adjusting split that it wants to add seems to ignore the exchange
> > rate altogether, as if it were always 1:1 even though it isn't?
> 
> Yes.  Let's say the original exch rate is 1:2, #10 -> $20 and you
> change the exch rate to 1:3; this means you have an extra "3.33"
> pounds (aka $10) that you need to deal with, so it provides you the
> balancing split as a suggestion.
> 
> When you reset the exchange rate it does NOT allow you reset the "To
> Amount" via the exchange rate dialog, which is probably why you're
> being confused.

(gnucash-1.8.7) register, $US credit card account, new transaction,
press split, enter 20 under Charge, select £UK expense account for other
account, enter 10 under Payment, rightclick on the 10, select Edit
Exchange Rate, enter .5, press OK, press enter, register shows
unbalanced transaction (10.00 more needed under Payment), just as if
both accounts were $US, or as if the exchange rate were 1:1, neither of
which is true.  try to accept transaction, gnucash posts Rebalance
Transaction popup.

is there something i missed?  is this how it is supposed to work?  am i
supposed to keep an Imbalance account to receive all the bogus imbalance
figures?

-greg