That is what I am thinking too. I could see the reasoning behind putting a limit on the display to a point. But at the same time it will drastically reduce the usefulness of the browsing function for most people if that is what is happening. Then again it could just be a bug too. I have around 1000 user directories in our home directory, so the list stopping at C is pretty rough lol.
It is also worth noting that you have to do FIM from the new interface. You can view the settings and turn the connector on and off in the Flash console, but you cannot make changes to it in the Flash console. I didn't notice this until I put in all the new stuff and went to save, and all I could do was cancel, and a blue link saying you have to make changes in the new ui. Guess I should learn to read first lol.