--- Operating System, Graphics card ---

Windows 7, 64 bit, nVidia Quadro 4000

--- Blender version with error, and version that worked ---

Error in 2.64a and 2.67b.
Last version I tried where this works is 2.49b.
I didn't try this in any version between 2.49b and 2.64a (usually I use Ctrl+H).

--- Short description of error ---

Hook modifier work when created with Ctrl+H, but not when created via modifier pane

--- Steps for others to reproduce the error (preferably based on attached .blend file) ---

When I create a hook with Ctrl+H and hook to new object, the hook works as expected.

When I create a hook as follows:

Create new cube mesh.
Create an empty at the point of a vertex of teh mesh.
Either in object or edit mode of the cube mesh, create a new hook modifier.
Choose the empty as object in the hook modifier.
In edit mode for the cube, select the vertex where the empty is and press assign in the hook modifier.
Go back to object mode.

the hooked vertex is always at the center of the object. It is not affected by the hook in any way.

When the hook is created with Ctrl+H and hook to new object, everythign works well. Also reassigning vertices works.