[kh99]

It looks like this code:

		$userdata->set_usertitle(
			$user['customtitle'] ? $user['usertitle'] : '',
			false,
			$display_usergroup,
			($user_usergroup['genericpermissions'] & $vbulletin->bf_ugp_genericpermissions['canusecustomtitle']) ? true : false,
			($user_usergroup['genericpermissions'] & $vbulletin->bf_ugp_genericpermissions['cancontrolpanel']) ? true : false
		);

is called before that hook. So maybe if you make that call again in your code, after you change the usergroup.