Indeed
I've had similar experiences with people I've interviewed. I've got a standard test I use when interviewing tech's, which isn't that tough. The worst score I've ever had back was from a graduate with a degree in computer science. His thesis was supposedly about network design, and he was very proud of having come up with splendid idea for making networks more efficient. Most impressive till he got the two questions about basic network classes wrong, and obviously didn't understand basic sub-netting. So much for the degree!
I've posted this on a similar topic, but I think it stands up to repeating for any other would-be employers out there. The best test score out of the last round of interviews I undertook, the one with the degree graduate mentioned above, was a guy who had no official qualifications or training. He had exactly the right attitude for the job too; a passion for it!