List Order Does Not Work on Automatic Payment Select

[ejd]

Joomla 2.5.4
VM 2.06

I have two payment types, PayPal and Purchase Order.
Purchase Order is for the Vendor Group only.

Auto-Select of payment type is on.

There is no way to CHOOSE Purchase Order as the DEFAULT auto-select item.
The LIST ORDER does not seem to work here.

For some reason, PayPal is always chosen as the default auto-selected payment type whether a person is logged in or not.
If a Vendor logs in, their default for payment type should be purchase order but it does not.