Comment 38 for bug 257190

Confirmed in fresh install of Karmic Koala with Empathy 2.28.1.
Status appears as "Hidden" in status drop-down list, but the account will be seen as "Busy" in the contacts list. I added myself in my list for testing purposes, and I appear to be "Busy" instead of offline.
Steps to reproduce the bug are described upwards, they are the same, I am just adding another confirmation. It should be a class-C bug, but with "A" priority, because is one of the most used features an average user wants to work fine. I haven't figured yet if this is a system-wide bug with other implications at other software levels, or it is strictly about Empathy.
Hope it will be reopened if it's closed, otherwise users will switch to other IM clients such Pidgin a.o., and Empathy might lose the popularity it won with its embed in 9.10.