Here's the issue visualized:
outside works correctly..
![](http://i65.tinypic.com/140heds.png)
Illustrating not finding a polygon inside another with 0 volume:
![](http://i64.tinypic.com/2dkfuhj.png)
Inside working for polygon with volume:
![](http://i68.tinypic.com/1iybea.png)
Edge cases working correctly with polys with 0 volume:
![](http://i63.tinypic.com/2zghmds.png)
again illustrating not finding a poly inside a poly if one has zeo volume:
![](http://i68.tinypic.com/dyu6j9.png)