Index: includes/menu.inc
===================================================================
--- includes/menu.inc	(revision 2291)
+++ includes/menu.inc	(working copy)
@@ -2238,6 +2238,8 @@
   db_query("UPDATE {menu_links} SET ". implode(', ', $set) ." WHERE ". implode(' AND ', $where), $args);
   // Check the has_children status of the parent, while excluding this item.
   _menu_update_parental_status($existing_item, TRUE);
+   //reset the parent status of the previous parent
+  _menu_update_parental_status($item, TRUE);
 }
 
 /**