[Plugin: Restrict Categories] Doesn't restrict on front page, but does on category page

I have set up two groups; Group 1, Group 2.
For both groups the only capability selected is Read.

I have created two users; User 1, User 2.
I have assigned User 1 to Group 1.
I have assigned User 2 to Group 2.

In the Members plugin I have enabled the content permissions feature.

I have created a post 1, and set it so only Group 1 can access it.
I have created a post 2, and set it so only Group 2 can access it.

When I log in as User 1, I can see both posts on the front page. I only want User 1 to be able see post 1, not post 2.

However if I attempt to view all posts in Category 2 (?cat=2) when logged in as User 1 I get the message that content is restricted, which is good.

Am I missing a step to restrict access to posts on the front page of wordpress?

I have tried using themes; Twenty Eleven 1.3, PulsePress 1.3.12

Thank you

http://wordpress.org/extend/plugins/restrict-categories/