I just hatched it using the INSIDE POINT & the SELECT OBJECT options without any problem in 2012.
I did find that you have an extra polyline lurking underneath the closed polyline.
That would be your problem, as it clearly would not be a valid entity for a hatch.
Is there a SELECTION CYCLING option in 2009?
At the bottom of your screen, left of center?
If you use the INSIDE POINT it should work though, because you wouldn't inadvertently select the wrong polyline.




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