Actually, that is probably the best way to make the feat in HL. Versatile Performer allows a number of Perform categories to be chosen equal to your Intelligence bonus and use them as if they had the same number of ranks as your highest ranked Perform category. It does not actually give them any ranks. In other words, your Hero doesn't gain any more ranks because of this feat, it just allows you to chose a number of Perform skills (typed in the user text associated with the feat) that act as if they have ranks. I'm not sure of any other way this would work, seems to be working as intended.
For example, a bard with an Intelligence of 13 and Perform (Singing) with 8 ranks takes Versatile Performer and chooses Perform (Oratory). He can now use Perform (Oratory) as if it has 8 ranks, which will operate as if it had the same number of ranks as your highest ranked Perform skill gets ranks, in case another Perform skill later got more ranks. However, the Perform (Oratory) skill itself has no ranks in it. If you choose to put a rank into Perform (Oratory), it will still operate at 8 ranks if you use it (because of the feat and the Perform (Singing)); the one rank you put into Perform (Oratory) does not stack with the ranks you are operating as due to Versatile Performer.
Hope that clears that up. If not, then I'm misunderstanding what you are asking.