I posted on this topic awhile back, but thanks to a comment and some discussion board conversations, i thought it deserved a follow-up.
In versions prior to LT 2009, the hatch's creation method determines what kind of polyline boundary you're going to get. If you used the "pick point" option, you'll get a closed polyline when you recreate the boundary. However, if you used the "select object" method, the re-created boundary will be lots of separate polylines.
This has been fixed in LT 2009, so that no matter how the hatch was created, the new boundary will be a closed polyline.

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