Just wanted to chime in and say that I’m having a very similar problem too. I’m trying to put in a dynamic sidebar into my site, and it’s not working. I traced the problem back to my “Latest Posts” section of the theme’s leftmost static sidebar, which uses query_posts to call the latest 10 entries.
I placed a snippet of code in my dynamic sidebar that would spit out the words “This is home!” whenever is_home was true. With the query_posts command in the static sidebar, I had the words “This is home!” on every single web page. However, if I removed the query_posts command, is_home was no longer true for every single page.
I only have very basic knowledge of PHP, so I don’t know how to solve this problem. For right now, the only solution I can think of is removing my “Latest Posts” section.
(I am running 2.3.3 as well, if that matters at all.)