callbacks dont invalidate records

gistfile1.rb

class Member < ActiveRecord::Base
  SALT = "some lengthy secret"

  before_create :hash_password

  # in rails 2 this would break the callback chain and set the error message
  # in rails 3 it doesnt
  #
  def hash_password
    if password == password_confirm
      password = hashed_password password
    else
      errors.add(:password, "The passwords do not match")
      return false
    end
  end

  def hashed_password password
    Digest::SHA512.hexdigest("#{password}#{SALT}")
  end
end