Unexpected output when using .mov format with gif codec

I'm attempting to render a mov file with the gif codec but I'm getting very odd output. I've tested this on Openshot 1.2 and 1.3 (installed from ppa) on Ubuntu 10.10

In the zip file I've included three files. (Also available from https://bugs.launchpad.net/openshot/+bug/718607/+attachment/1848885/+files/openshotbutterfly.zip )

Original file available from here: http://www.archive.org/details/Butterfly_308 | http://www.archive.org/download/Butterfly_308/Butterfly_512kb.mp4

The file butterfly_openshot.mov was encoded in Openshot using these settings

Profile
DVD PAL Widescreen

Image Sequence Settings
PNG (though this shouldn't affect video output)

Video settings
Video Format: mov
Video Codec: gif
Bit Rate: 15.00 Mb/s – HDTV quality

Audio Settings
Audio Codec: None

I've also reencoded it using ffmpeg (ffmpeg -i butterfly_openshot.mov -sameq butterfly_openshot_2.mov) in case it doesn't play smoothly.

butterfly_ffmpeg.mov was encoded using ffmpeg using these settings:

ffmpeg -i Butterfly_512kb.mp4 -f mov -vcodec gif -sameq butterfly_ffmpeg.mov

As you can see the output is much truer to the original.