I also had this problem right from the start (but in my case the user won't recognize it, cause the camera doesn't change into the "critical area", where the plains don't face to the camera anymore)! The funny part was, that the "smoke-demo" works correct (you can move your camera around and the plains always face the camera)! But I wanted to use my own definition for the particles and used the "phy create particle emitter" (or what it's called exactly) and then the particles started to only face to the camera at the cam-startposition, but when the camera was moved around the plains didn't change accordingly and so they started to look ugly!
I also hope that this will be fixed in the next update (if this will ever arrive)!
Hoozer