Blender Git Loki

Moved initialization of vertex flags up a bit in the subdivide
routine because they were trumping a fix I had made earlier
to deal with subdivide smooth and mirror modifiers.

Campbell, could you please check that this commit is compatible
with the results you were expecting from commit 14227? Here
is the log of that commit:

http://projects.blender.org/plugins/scmsvn/viewcvs.php/trunk/blender/source/blender/src/editmesh_tools.c?root=bf-blender&view=log#rev14227