Dynamic Caching does not work with latest update (1.4.1)

update: if statements work fine, but when checking if the page is_single or is_home does not work. I have also tried to place a wp_reset_query(); before the statement, but nothing. The code below always output 2. Left the time stamp to make sure page is updated when refreshed.

*** section of dynamic-cache-test.php***
ob_start();
$test = (include ‘wp-content/test.php’);
echo $test;
echo “<p>This is a test. The current time on the server is: ” . date( ‘H:i:s’ ) . “</p>”;
$text = ob_get_contents();
ob_end_clean();

****test.php***
<?php
$x = 1;
$y = 2;
if( is_single() || is_home()) {
return $x;
} else {
return $y;
}