using two taxonomies for filtering

I am trying to filter by two different taxonomies resulting in a sort of logical AND of the two taxonomies. I'm also starting to bang my head against the wall, returning to drupal 5 or writing my own PHP code...
My view should do this:

library/ 
           taxonomy1_term1 (n)
           taxonomy1_term2 (n)

library/tid(taxonomy1_term2)
           taxonomy2_term1 (n)
           taxonomy2_term2 (n)

library/tid(taxonomy1_term2)/tid(taxonomy2_term1)
           node1 (taxonomy1_term2, taxonomy2_term1)
           node2 (taxonomy1_term2, taxonomy2_term1)

I'm using filters and two arguments tid. I can get a summary with counters on "level 1", but on "level 2" it displays nothing or again the summaries from "level 1". Below is the output from export and preview. Let me know if you need anything else. Any help is greatly appreciated as I am trying to improve my understanding of views2.

$view = new view;
$view->name = 'file_store_documents';
$view->description = 'List file store documents';
$view->tag = '';
$view->view_php = '';
$view->base_table = 'node';
$view->is_cacheable = FALSE;
$view->api_version = 2;
$view->disabled = FALSE; /* Edit this to true to make a default view disabled initially */
$handler = $view->new_display('default', 'Defaults', 'default');
$handler->override_option('fields', array(
  'title' => array(
    'label' => 'Title',
    'link_to_node' => 0,
    'exclude' => 0,
    'id' => 'title',
    'table' => 'node',
    'field' => 'title',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'field_document_author_value' => array(
    'label' => '',
    'link_to_node' => 0,
    'label_type' => 'widget',
    'format' => 'default',
    'multiple' => array(
      'group' => TRUE,
      'multiple_number' => '',
      'multiple_from' => '',
      'multiple_reversed' => FALSE,
    ),
    'exclude' => 0,
    'id' => 'field_document_author_value',
    'table' => 'node_data_field_document_author',
    'field' => 'field_document_author_value',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'field_document_year_value' => array(
    'label' => '',
    'link_to_node' => 0,
    'label_type' => 'widget',
    'format' => 'default',
    'multiple' => array(
      'group' => TRUE,
      'multiple_number' => '',
      'multiple_from' => '',
      'multiple_reversed' => FALSE,
    ),
    'exclude' => 0,
    'id' => 'field_document_year_value',
    'table' => 'node_data_field_document_year',
    'field' => 'field_document_year_value',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'field_document_link_url' => array(
    'label' => '',
    'link_to_node' => 0,
    'label_type' => 'widget',
    'format' => 'default',
    'multiple' => array(
      'group' => TRUE,
      'multiple_number' => '',
      'multiple_from' => '',
      'multiple_reversed' => FALSE,
    ),
    'exclude' => 0,
    'id' => 'field_document_link_url',
    'table' => 'node_data_field_document_link',
    'field' => 'field_document_link_url',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'tid' => array(
    'label' => 'Topics',
    'type' => 'separator',
    'separator' => ', ',
    'empty' => '',
    'link_to_taxonomy' => 0,
    'limit' => 1,
    'vids' => array(
      '3' => 3,
      '1' => 1,
      '4' => 0,
    ),
    'exclude' => 1,
    'id' => 'tid',
    'table' => 'term_node',
    'field' => 'tid',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
));
$handler->override_option('arguments', array(
  'tid' => array(
    'default_action' => 'summary asc',
    'style_plugin' => 'default_summary',
    'style_options' => array(
      'count' => 1,
      'override' => 1,
      'items_per_page' => '25',
    ),
    'wildcard' => 'all',
    'wildcard_substitution' => 'All',
    'title' => 'Library » %1',
    'default_argument_type' => 'fixed',
    'default_argument' => '',
    'validate_type' => 'taxonomy_term',
    'validate_fail' => 'not found',
    'break_phrase' => 0,
    'add_table' => 0,
    'require_value' => 0,
    'reduce_duplicates' => 0,
    'set_breadcrumb' => 1,
    'id' => 'tid',
    'table' => 'term_node',
    'field' => 'tid',
    'relationship' => 'none',
    'default_options_div_prefix' => '',
    'default_argument_user' => 0,
    'default_argument_fixed' => '',
    'default_argument_php' => '',
    'validate_argument_node_type' => array(
      'image' => 0,
      'file_store_document' => 0,
      'page' => 0,
      'press_release' => 0,
      'story' => 0,
      'wiki' => 0,
    ),
    'validate_argument_node_access' => 0,
    'validate_argument_nid_type' => 'nid',
    'validate_argument_vocabulary' => array(
      '3' => 3,
      '1' => 0,
      '4' => 0,
    ),
    'validate_argument_type' => 'tid',
    'validate_argument_php' => '',
  ),
  'tid_1' => array(
    'default_action' => 'summary asc',
    'style_plugin' => 'default_summary',
    'style_options' => array(),
    'wildcard' => 'all',
    'wildcard_substitution' => 'All',
    'title' => '%2',
    'default_argument_type' => 'fixed',
    'default_argument' => '',
    'validate_type' => 'taxonomy_term',
    'validate_fail' => 'not found',
    'break_phrase' => 0,
    'add_table' => 0,
    'require_value' => 0,
    'reduce_duplicates' => 0,
    'set_breadcrumb' => 1,
    'id' => 'tid_1',
    'table' => 'term_node',
    'field' => 'tid',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
    'default_options_div_prefix' => '',
    'default_argument_user' => 0,
    'default_argument_fixed' => '',
    'default_argument_php' => '',
    'validate_argument_node_type' => array(
      'image' => 0,
      'file_store_document' => 0,
      'page' => 0,
      'press_release' => 0,
      'story' => 0,
      'wiki' => 0,
    ),
    'validate_argument_node_access' => 0,
    'validate_argument_nid_type' => 'nid',
    'validate_argument_vocabulary' => array(
      '1' => 1,
      '3' => 0,
      '4' => 0,
    ),
    'validate_argument_type' => 'tid',
    'validate_argument_php' => '',
  ),
));
$handler->override_option('filters', array(
  'status' => array(
    'operator' => '=',
    'value' => 1,
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'status',
    'table' => 'node',
    'field' => 'status',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'type' => array(
    'operator' => 'in',
    'value' => array(
      'file_store_document' => 'file_store_document',
    ),
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'type',
    'table' => 'node',
    'field' => 'type',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'language' => array(
    'operator' => 'in',
    'value' => array(
      '***CURRENT_LANGUAGE***' => '***CURRENT_LANGUAGE***',
    ),
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'language',
    'table' => 'node',
    'field' => 'language',
    'relationship' => 'none',
  ),
  'vid' => array(
    'operator' => 'in',
    'value' => array(
      '3' => 3,
      '1' => 1,
    ),
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'vid',
    'table' => 'term_data',
    'field' => 'vid',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
));
$handler->override_option('access', array(
  'type' => 'none',
  'role' => array(),
  'perm' => '',
));
$handler->override_option('header', '<?php
echo "<pre>";
var_dump(arg(0));
var_dump(arg(1));
var_dump(arg(2));
echo "</pre>";');
$handler->override_option('header_format', '3');
$handler->override_option('header_empty', 1);
$handler->override_option('use_pager', 'mini');
$handler->override_option('distinct', 1);
$handler->override_option('style_plugin', 'list');
$handler->override_option('style_options', array(
  'grouping' => 'title',
  'type' => 'ol',
));
$handler = $view->new_display('page', '1st level library page', 'page_1');
$handler->override_option('filters', array(
  'status' => array(
    'operator' => '=',
    'value' => 1,
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'status',
    'table' => 'node',
    'field' => 'status',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'type' => array(
    'operator' => 'in',
    'value' => array(
      'file_store_document' => 'file_store_document',
    ),
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'type',
    'table' => 'node',
    'field' => 'type',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'language' => array(
    'operator' => 'in',
    'value' => array(
      '***CURRENT_LANGUAGE***' => '***CURRENT_LANGUAGE***',
    ),
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'language',
    'table' => 'node',
    'field' => 'language',
    'relationship' => 'none',
  ),
  'vid' => array(
    'operator' => 'in',
    'value' => array(
      '3' => 3,
    ),
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'vid',
    'table' => 'term_data',
    'field' => 'vid',
    'override' => array(
      'button' => 'Use default',
    ),
    'relationship' => 'none',
  ),
));
$handler->override_option('title', 'Library');
$handler->override_option('style_plugin', 'default');
$handler->override_option('style_options', array(
  'grouping' => 'tid',
));
$handler->override_option('path', 'library');
$handler->override_option('menu', array(
  'type' => 'tab',
  'title' => 'Library',
  'weight' => '0',
));
$handler->override_option('tab_options', array(
  'type' => 'none',
  'title' => '',
  'weight' => 0,
));
$handler = $view->new_display('page', '2nd level', 'page_2');
$handler->override_option('arguments', array(
  'tid' => array(
    'default_action' => 'not found',
    'style_plugin' => 'default_summary',
    'style_options' => array(
      'count' => 1,
      'override' => 1,
      'items_per_page' => '25',
    ),
    'wildcard' => 'all',
    'wildcard_substitution' => 'All',
    'title' => 'Library » %1',
    'default_argument_type' => 'fixed',
    'default_argument' => '',
    'validate_type' => 'taxonomy_term',
    'validate_fail' => 'not found',
    'break_phrase' => 0,
    'add_table' => 0,
    'require_value' => 0,
    'reduce_duplicates' => 0,
    'set_breadcrumb' => 1,
    'id' => 'tid',
    'table' => 'term_node',
    'field' => 'tid',
    'relationship' => 'none',
    'default_options_div_prefix' => '',
    'default_argument_user' => 0,
    'default_argument_fixed' => '',
    'default_argument_php' => '',
    'validate_argument_node_type' => array(
      'image' => 0,
      'file_store_document' => 0,
      'page' => 0,
      'press_release' => 0,
      'story' => 0,
      'wiki' => 0,
    ),
    'validate_argument_node_access' => 0,
    'validate_argument_nid_type' => 'nid',
    'validate_argument_vocabulary' => array(
      '3' => 3,
      '1' => 0,
      '4' => 0,
    ),
    'validate_argument_type' => 'tid',
    'validate_argument_php' => '',
    'override' => array(
      'button' => 'Use default',
    ),
  ),
  'tid_1' => array(
    'default_action' => 'summary asc',
    'style_plugin' => 'default_summary',
    'style_options' => array(
      'count' => 1,
      'override' => 1,
      'items_per_page' => '25',
    ),
    'wildcard' => 'all',
    'wildcard_substitution' => 'All',
    'title' => 'Library » %1 » %2',
    'default_argument_type' => 'fixed',
    'default_argument' => '',
    'validate_type' => 'taxonomy_term',
    'validate_fail' => 'not found',
    'break_phrase' => 0,
    'add_table' => 0,
    'require_value' => 0,
    'reduce_duplicates' => 0,
    'set_breadcrumb' => 1,
    'id' => 'tid_1',
    'table' => 'term_node',
    'field' => 'tid',
    'override' => array(
      'button' => 'Use default',
    ),
    'relationship' => 'none',
    'default_options_div_prefix' => '',
    'default_argument_user' => 0,
    'default_argument_fixed' => '',
    'default_argument_php' => '',
    'validate_argument_node_type' => array(
      'image' => 0,
      'file_store_document' => 0,
      'page' => 0,
      'press_release' => 0,
      'story' => 0,
      'wiki' => 0,
    ),
    'validate_argument_node_access' => 0,
    'validate_argument_nid_type' => 'nid',
    'validate_argument_vocabulary' => array(
      '1' => 1,
      '3' => 0,
      '4' => 0,
    ),
    'validate_argument_type' => 'tid',
    'validate_argument_php' => '',
  ),
));
$handler->override_option('filters', array(
  'status' => array(
    'operator' => '=',
    'value' => 1,
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'status',
    'table' => 'node',
    'field' => 'status',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'type' => array(
    'operator' => 'in',
    'value' => array(
      'file_store_document' => 'file_store_document',
    ),
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'type',
    'table' => 'node',
    'field' => 'type',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
  ),
  'language' => array(
    'operator' => 'in',
    'value' => array(
      '***CURRENT_LANGUAGE***' => '***CURRENT_LANGUAGE***',
    ),
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'language',
    'table' => 'node',
    'field' => 'language',
    'relationship' => 'none',
  ),
  'vid' => array(
    'operator' => 'in',
    'value' => array(
      '1' => 1,
    ),
    'group' => '0',
    'exposed' => FALSE,
    'expose' => array(
      'operator' => FALSE,
      'label' => '',
    ),
    'id' => 'vid',
    'table' => 'term_data',
    'field' => 'vid',
    'override' => array(
      'button' => 'Use default',
    ),
    'relationship' => 'none',
  ),
));
$handler->override_option('path', 'library/%');
$handler->override_option('menu', array(
  'type' => 'none',
  'title' => '',
  'weight' => 0,
));
$handler->override_option('tab_options', array(
  'type' => 'none',
  'title' => '',
  'weight' => 0,
));

Query	

SELECT DISTINCT(node.nid) AS nid,
   node.title AS node_title,
   node.type AS node_type,
   node_data_field_document_author.field_document_author_value AS node_data_field_document_author_field_document_author_value,
   node_data_field_document_author.nid AS node_data_field_document_author_nid,
   node_data_field_document_author.field_document_year_value AS node_data_field_document_author_field_document_year_value,
   node_data_field_document_author.field_document_year_value2 AS node_data_field_document_author_field_document_year_value2,
   node_data_field_document_author.field_document_link_url AS node_data_field_document_author_field_document_link_url,
   node_data_field_document_author.field_document_link_title AS node_data_field_document_author_field_document_link_title,
   node_data_field_document_author.field_document_link_attributes AS node_data_field_document_author_field_document_link_attributes,
   node.vid AS node_vid,
   'file_store_documents:page_2' AS view_name
 FROM node node 
 LEFT JOIN term_node term_node ON node.vid = term_node.vid
 LEFT JOIN term_data term_data ON term_node.tid = term_data.tid
 LEFT JOIN term_node term_node2 ON node.vid = term_node2.vid AND term_node2.tid != 12
 LEFT JOIN content_type_file_store_document node_data_field_document_author ON node.vid = node_data_field_document_author.vid
 WHERE (node.status <> 0) AND (node.type in ('file_store_document')) AND (node.language in ('***CURRENT_LANGUAGE***')) AND (term_data.vid in ('1')) AND (term_node.tid = 12) AND (term_node2.tid = 36)