Me and a friend are building a custom server and we noticed that HD texture packs don't work with the SMP pack transfer feature. They result in malformed textures being applied near the player when they log in, almost like chunk errors. A screenshot of a possible form of the odd textures is attached.
Duplicate of MC-8538, please use the search function to see if your bug has already been submitted. Currently over 55% of tickets are being closed as duplicate.