I'll stick my neck out here and respond without having UFT in front of me at the moment...
I think you are confusing the use of the word 'principal' - a 'principal event is a B, D or M (birth/death/marriage) - selecting 'Principal events only' confines the report to only these events - which seems to be the case from what you say (ie, UFT is working correctly).
However, 'principal' persons IN an event are those people 'important' to an event, eg husband/wife in a divorce (but not their children, for example).
Everybody else, please jump in if my understanding is wrong here....
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