I'm currently already far passed it. And yeah, the settings are all correct, works flawlessly everywhere else. The problematic part was the first Clefthoof part, with the passive ones.
My other druid is in the middle of terrokar atm so it'll be getting there soon enough. I'll see if it does the same thing.
I did notice that it was sticking to very specific locations, namely right where the clefthoof's were, but it just wasn't attacking them... I checked into the profile and saw the quest (9789 btw) didn't have a grind area? I haven't done anything with HB yet, but I'm not new to designing/programming/logic stuff, but when I was reading through the XML, it looked like there may be 2 sections for 9789? I noticed the next quest (windroc i think?) had a grind area, so I was thinking that may be it... I dunno. Guess we'll see when my other one gets there...