In SharePoint 2010, I have a standard Announcements list on which I have enabled Audience Targeting. When a list view is setup to display the Target Audience, it renders as a GUID, not as the display name of the Audience. Has anyone been able to fix this?
I've experienced the same thing... I've noticed that it only happens when the first item on the list or library is targeted.
I had a list where item # 1 had no targeting and a few others did. It all looked fine until I targeted the first item and then all the items got messed up. I removed the targeting on the first item and all went back to normal.
I then experimented some more: I targeted an item further down the list, leaving the first one untargeted and everything was ok, but then I sorted the list by modified (instead of name) and hey presto... GUIDs again!!
So basically, targeting the first item on the list is what messes things up!
Is the database from 2007 that was upgraded using the db attach method? If so you need to update the SSP database when creating the User Profile service to import the Audience from 2007. More info here.
The GUID display on audiences is by design. I have also had the same problem where the first item in the list is displayed as GUID - I even tried different lists..
There is a link here http://www.vishansondhi.com/?p=36 which confirms that is an issue which Microsoft have not fixed (& I believe they don't intend to either)