Is this a bug in "sh"?

[Mark Lanzo]

I ran into a strange problem when I was writing a "sh" script.
I do not know whether or not this is a bug.
if it is, I will report it to the local vendor's support line, but
I'd like to find out for sure before I send the support folks on a 
wild goose chase.

So what's the verdict on what the correct response the following
script should produce?

			Thanks in advance,
				Mark Lanzo
				...!uunet!wgate!lanzo  (lanzo at wgate.com)

-------------------------%<---snip here (but you knew that, didn't you?)------
#!/bin/sh
#
# A script to demonstrate a possible shell bug.
#
# Assume that the current directory contains the files "f1", "f2", and "f3",
# and "bug" (this script), and I run this script in it.
# What should the output of the script be?
#
# I would expect this:
#	Arguments are a b c
#	bug f1 f2 f3
#	Arguments now are a b c
#
# But instead I actually see:
#	Arguments are a b c
#	bug f1 f2 f3
#	Arguments now are bug f1 f2 f3
#
# When calling shell "functions", the positional parameters ($1, $2...) 
# are supposed to be set to the arguments of the function.  Apparently
# this blows away all the positional parameters of all the calling (higher
# level) functions!
# This does not happen on our system if I use "/bin/ksh" instead;
# it gives the first response shown above.

ECHO()
    {
    echo "$*"
    }

show_bug()
    {
    echo Arguments are "$*"
    ECHO *
    echo Arguments now are "$*"
    }

show_bug a b c