Selection-Pivot-Position & Rotation Moves Object Around

Create a 1x1x1 cube, select a single polygon and scale it down to lets say 0.25. Switch to object mode. Activate the rotation tool and choose 'Selection' as pivot position. The orientation of the pivot is not as important, but it "works best" if it is object or selection space.
Click & hold one axis or try several and move the mouse across the screen with moderate speed. Watch how the object flounces and follows along your path.

I follow the steps but can't see the problem.

Here's a video where you can see the dramatic effect:
http://www.youtube.com/embed/bbwkfdDa-2Q?rel=0

Fixed.

Hi IStonia,

Although the problem with the object moving location while rotating is fixed. It now appears the "pivot position-> Selection" is broken and is no longer constant to bounded box center. After a rotation(of a similar objects as the cube described above), the selections pivot position is re-calculated incorrectly and relocates away from bounded box center.

Fixed.