Taking a quick look at the May 31, 2006 balance sheet, my guess would be that the distributions have been reclassed because there were no "earnings and profits" (basically retained earnings/deficit) from which to pay dividends.  However, I believe a corp is allowed to pay dividends from "current" earnings, regardless of previous deficits, so it's possible it was up to their discretion whether to call it a return of capital or dividend since they did have "current" earnings last year.

I'm sure we'll get a valid explanation soon enough.