Ubuntu 14.04.02 LTS Geforce GTX 580
Broken: 2.74 release up to latest buildbot 097862c
Short description of error
Radial Normals behave like parallel normals when using a target object
Exact steps for others to reproduce the error
Open attached .blend:- go to edit mode - normals are fine. Go out of edit mode - select the Empty as target object (it is at the same location as the left tree's origin). The shading changes. Go to edit mode - the normals are all parallel and not even pointing in a direction related to the empty.
(the normals shown are vertex-per-face-normals).