Windows 7 Premium X64 with Intel i7 3770k and 16GB of RAM
nVidia Geforce GTX 660 Ti 2GB
Blender 2.72 standard release version downloaded from Blender.org download page.
Worked: never worked.
Short description of error
I tried to use lattice deform modifier to deform a simple mirrored mesh rectangular object, I did everything properly according to the tutorial and wiki page. It just won't work the way I expected it to. The mesh deforms by simply fixes the relative location of its vertices onto the closest lattice point and simplly move it along. Not only this, when I select the lattice in modifier panel, the mesh immediately enlarges itself by the size of the lattice. I have no clue what is happening. There are a handful of tutorial and problem post on the net, but I couldn't seem to find a similar case that is solved.
Exact steps for others to reproduce the error
Simply create a cube, edit it, apply the transform. (add a mirror modifier or not) Add a lattice, scale it up or down in object mode to fit it around the mesh. either apply transform on the lattice or not, add the modifier on the mesh and select the lattice just created. The problem is there. I've attached my problem-ish .blend file here. Please help!!