Problem impacts both grade items and assignments. Moodle 2.8, clean theme. Posted to forums where it was verified as a bug in the system.

If instructor creates an assignment, enters grades, and then realizes the "out of" grade was incorrect and changes it, the category totals do not update to reflect the change. This is causing serious issues in our Moodle instance.

For example: a professor wants participation worth 10 points a week. They set up a grade item, but forget to change the maximum grade so it ends up being the default, or out of 100. The professor enters grades for the week, all numbers 10 or less. The prof realizes the mistake and changes the amount the grade item is worth to 10. Grader report and set up tab will show that "out of" is now 10, but range will remain 100 and grades calculate as though it is still out of 100.

It does not matter if grades are entered directly into grader report, or via the assignment grading module.

Screen shot 1: Assignment settings set to be worth 10 points: http://screencast.com/t/6dZCOLGE6l

Screen shot 2: Assignment in SetUp tab correct as 10 points: http://screencast.com/t/LtpkkteJ40

Screen shot 3: Assignment in Grader report shows range as 100 and is grading out of 100 instead of 10: http://screencast.com/t/xXf8MxPbH6

Right now the only solution is to delete and re-add all the grades, which is very problematic for this moodle admin.