this from
http://www.altfg.com/blog/film-festivals/san-sebastian-film-festival-awards-2007-winners/
--------------------------------------------------The jury was presided by author and director Paul Auster, with whom Wang had previously worked on the meandering 1995 dramatic comedy Smoke and its sequel, Blue in the Face. The duo reportedly had a falling out a few years later while working on another project.
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My two'pennorth :

Fall-out or no fall-out, Auster's previous connections to Wang surely should have ruled him out of sitting on the jury, let alone being its president. This isn't to impugn Auster's impartiality in any way, of course, but the author/director himself should have had the sense to withdraw as soon as he saw that Wang's movie was among the competition candidates.

http://www.jigsawlounge.co.uk/film/content/view/686/1/

My thoughts exactly. Again: not to accuse anyone of anything, but still.

Something similar happened at venice with the golden lion given to lust and caution

I'm not sure what you mean, John. Is there an Ang Lee connection here?

Zhang Yimou (China, director), chairman
Catherine Breillat (France, director)
Jane Campion (New Zealand, director)
Emanuele Crialese (Italy, director)
Alejandro González Iñárritu (Mexico, director)
Ferzan Ozpetek (Turkey/Italy, director)
Paul Verhoeven (Netherlands, director)

Both Zhang Yimou and Iñarritu are very good friends of Lee. In fact, many in the crew of bareback mountain worked in amores perros and consistently work in Iñarritu movies. This was much talk in the news after the awards