Bug? Won't eval an 'if' sexp?

[Hacksaw]

I added this to my .emacs under version 20.7:

(if (eq (user-uid) 0)
        (message "You're uid 0, no desktop")
        (lambda ()
          (message "setting up desktop")
          (custom-set-variables
           '(desktop-enable t nil (desktop)))
          (desktop-load-default)
          (desktop-read)
         )                              
)


It worked just fine. Under 21.2 it's not evaluated correctly. Doing a eval lst 
sexp, it returns the lamda, I guess implying that it's not evaluating it?

[What I see in the *Message* buffer]

(lambda nil (message "setting up desktop") (custom-set-variables (quote 
(desktop-enable t nil ...))) (desktop-load-default) (desktop-read))

Anyone know what's up?
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