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Why does my Raspberry Pi reboot when USB devices are plugged into a powered hub?

01 May 2013
Windows
Firefox 20
01 May 2013 | Windows | Firefox 20

The Pi is non hot-pluggable, meaning whenever a usb device is plugged into it, it reboots itself due to a drop in current. I’ve read that it has something to do with the polyfuse having zero resistance, or something like that.

I did what most forum users recommended–use a powered usb hub. So here’s what I did:
1. Pi only has HDMI, and SD card plugged in. It stares silently at me.
2. I plugged the hub’s usb connector into the the Pi’s usb slot.
3. I switch on the hub.
4. I switch on the Pi.
5. Pi is now fully booted and greeting me is Raspbmc’s main screen.
6. I plug in my external 2.5′ hard disk.
7. POOF! screen goes blank.
8. Pi reboots.

Am I doing anything wrong here? The hub is supposed to supply current to the hard disk, but why does the Pi still reboot?.