CREATE LOGIN *** WITH PASSWORD=0x*** HASHED

Hello,
Could anybody explain: is following supposed to work:



CREATE LOGIN test


WITH PASSWORD=0xF1E9E5CA9A79F7B5D883FA4D9680ED1D4D9AAB12 HASHED,

CHECK_POLICY = OFF;
GO

where

0xF1E9E5CA9A79F7B5D883FA4D9680ED1D4D9AAB12
result of

SELECT HASHBYTES ('SHA1','$Test123#')


execution of 'create login' results in following error

Msg 15021, Level 16, State 2, Line 1

Invalid value given for parameter PASSWORD. Specify a valid parameter value.

Interesting enough is that if I use MD5 the hash is 8 bytes shorter and create login works but actual login procedure does not. And if I just use plain text password without HASHED everything works.

This is on sqlexpress 2005 sp2. Is this specific to express version?
I've noticed that realatively old SQL BO 2005 states that hashed password should be passed as literal in single quotations ' *** ' (and it does not work) and msdn online states that in case of HASHED hexadecimal value should be passed without single quotations, anyway does not work either ...

Thanks,

--Alex