Photoshop :: CS3 - Vista 64 Transform Selection

I make a selection, select move (which shrinks the bounding box to the pixels themselves) and click "show transform controls" and (after verifying my reference location point is centered) I press (and hold)shift, click the middle bounding box on my selection and try to proportionally scale the selection it does not work. Only the side I am moving transforms. I thought since I am holding shift, the ENTIRE selection will transform based on the reference (or pivot) point?

I'm simply trying to scale a selection (in this case) on the horizontal axis only and scaling from the selected reference point (center).

Am I missing something or is it another CS3/vista64 "incompatibility"