When adding particles in Particle Edit mode using the Add brush, they appear in entirely different location. This used to work in 2.70, in 2.71 it broke somehow.
Sometimes this can be fixed by disabling the subsurf modifier that comes before the particle system. However, having subsurf and particles work together is vital!
See attached file. This file should have a character base mesh already with a particle system, and the Add Particles tool enabled. To repeat the error, simply add particles by drawing on the mesh.
Tested using Blender Institute Linux workstation. Tracked down past working version using the windows builds from download.blender.org
Broken: 2.71 and after
Worked: pre 2.70