--- /www/sites/all/modules/rules/rules/modules/taxonomy.rules.inc	Wed Aug 05 19:20:41 2009
+++ /www/sites/all/modules/rules/rules/modules/taxonomy.rules.inc	Sun Sep 19 20:19:45 2010
@@ -201,10 +201,39 @@
  * Action: Remove a term from content.
  */
 function rules_action_taxonomy_term_remove_from_content($node, $taxonomy_term, $settings) {
-  if (isset($node->taxonomy[$taxonomy_term->tid])) {
-    unset($node->taxonomy[$taxonomy_term->tid]);
+  $recursive_search = _rules_action_taxonomy_term_remove_from_content_helper($taxonomy_term->tid, $node->taxonomy);
+  if ($recursive_search != FALSE) {
+    switch (count($recursive_search)) {
+      case 2:
+        unset($node->taxonomy[$recursive_search[0]][$recursive_search[1]]);
+        break;
+      case 1:
+        unset($node->taxonomy[$recursive_search[0]]);
+        break;
+      default:
+        break;
+    }
+    unset($recursive_search);
     return array('node' => $node);
   }
+}
+
+/**
+ * Helper: This is a helper function for recursive array browsing
+ */
+
+function _rules_action_taxonomy_term_remove_from_content_helper($needle, $haystack, $path=array()) {
+  if(!is_array($haystack)) {return FALSE;}
+  foreach($haystack as $key => $val) {
+    if(is_array($val) && $subPath = _rules_action_taxonomy_term_remove_from_content_helper($needle, $val, $path)) {
+      $path = array_merge($path, array($key), $subPath);
+      return $path;
+    } elseif($val == $needle) {
+      $path[] = $key;
+      return $path;
+    }
+  }
+  return FALSE;
 }
 
 /**