Ray
I have tried to unfold this in 7 and 8, I get the same results as you, however I have also tried to unfold in AutoPOL and again the same results. IV needs continuous surfaces in order to unfold, what you are getting is the unfolding of that continuous "surface", the round edges create a surface whaich has curves in two directions and will technically deform at the bends. AutoPOL also needs continuous surfaces but will unfold without bends on either outer or inner surface of the model. Imagine trying to unfold part of a sphere, the edges at the bends of your model are similar. Sorry I can't be of further help but I am afraid the type of model you have created cannot be unfolded with radiused edges.
regards
BIll