I am having a very peculiar problem with Share point list. I am not
able to understand whether its a bug or if i am doing something wrong.

Here is what i need to achieve:

1. User "A" who is contributor by default logs in and creates some new
item in list and can only edit what he/she has created and no one
else's, unless they have full control access.
2. But the User "A" should be able to view other items.

Problem Being faced:

1. On the Custom list in the advanced settings i gave the permission
on item-level fro edit access as: Only their own.
And read access: View All

2. User "A" logs in creates a new item successfully. When goes back to
the list can still see the "Edit Item" option in the rollover for the
items he didn't create.

3. The user clicks on "Edit item".Make the necessary changes and when
hit OK it gives Access Denied. Which is right because i have set the
permission on the item as "Edit its own"

So the questions is or shud i say the problem is why the "Edit Item"
link shows in hover. As its misleading for the users..

Is it a bug or i am doing something wrong here.