I tested this today and the problem still seems to exists in 4.2.
here are the files...
install.xml:
<?xml version="1.0"?>
<installation version="1.0">
<info>
<appname>Conditions Test</appname>
<appversion>0.1</appversion>
</info>
<guiprefs resizable="yes" width="700" height="450">
<laf name="looks">
<os family="windows" />
</laf>
<modifier value="true" key="showDebugWindow" />
</guiprefs>
<locale>
<langpack iso3="eng" />
</locale>
<resources>
<res src="userInputSpec.xml" id="userInputSpec.xml" />
</resources>
<conditions>
<condition type="variable" id="pack.choice.A">
<name>testcase.option</name>
<value>A</value>
</condition>
</conditions>
<panels>
<panel classname="UserInputPanel" />
<panel classname="PacksPanel" />
<panel classname="SummaryPanel" />
</panels>
<packs>
<pack name="Pack 1" required="no" preselected="yes" id="1">
<description><![CDATA[Main Pack -- should be seen no matter what]]></description>
</pack>
<pack name="Pack 2" id="2" required="no" condition="!pack.choice.A">
<description><![CDATA[If user chose Option A, This should not be seen]]></description>
</pack>
<pack name="Pack 3" id="3" required="no" condition="pack.choice.A">
<description><![CDATA[If user chose Option B, This should not be seen]]></description>
</pack>
</packs>
</installation>
userInputSpec.xml:
<userInput>
<panel order="0">
<field type="title" bold="true" txt="Choose an Option" />
<field type="combo" variable="testcase.option">
<description align="left"
txt="Option to switch packages on next panel"
id="description.testcase.option" />
<spec txt="Choose : ">
<choice txt="Option A" value="A" />
<choice txt="Option B" value="B" />
</spec>
</field>
</panel>
</userInput>
Initially staged for 4.1.1, but Dennis you can move it to another version if timing is an issue.