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Default Excel "if" Bug?

=IF(D337="Front",1,IF(D337="Rear",1,IF(D337="Both" ,2,0)))
Formula created on new, blank sheet - Works Great
Copy to Contract Sheets - Big Problems
Formula will not return a Zero, (as expected) when D337 is Blank
Checked cell formatting, etc. All the same as the OK Version.
If I select fx so that the function arguments screen pops up, the first
statement shows as TRUE (althought D337 is blank).
When I check fx on the original sheet, (with a blank D337), the first
statement correctly shows as false.
If I do a copy (from the non-working sheet) and insert onto a new, blank ws,
the formula looks and works fine again.
Does anyone have any idea where I have to look for this one?

 
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