  We show that the relation between nonlocality and entanglement is subtler
than one naively expects. In order to do this we consider the neutral kaon
system--which is oscillating in time (particle--antiparticle mixing) and
decaying--and describe it as an open quantum system. We consider a Bell--CHSH
inequality and show a novel violation for non--maximally entangled states.
Considering the change of purity and entanglement in time we find that, despite
the fact that only two degrees of freedom at a certain time can be measured,
the neutral kaon system does not behave like a bipartite qubit system.
