Vern, vern, vern.....yes, yes i've seen that happen. It used to be that i had to add exclusion criteria to the default workflow (not equal to any of the other defining criteria). Workflow in your version was a trainwreck though; its a shame you can't upgrade. The newer version works like a charm and as expected.
Now, as a workaround, something i've also done to make the defining criteria a bit easier was to create a field called "WORKFLOW NAME" and set that with a business rule (either onscreen if you can get that to work in your version or after save) and use that as the single defining criteria for the workflow.
Thanks Linda! I'm always glad to hear I'm not doing something silly.
Luckily we're prepping to update to the newest version, so this will just give me more ammo to push for the upgrade.