My favorite hazing rumor is of a sorority on campus that has a rep for being spoiled Daddy's girls. They apparently make their pledges go to each sister's house or room and catalog their wardrobes. After that, sisters ask them, "How many pairs of black pants do I own?" and "How many Steve Maddens do I have?" and the pledges get yelled at if they don't know.
We have one fraternity on campus that has since lost it' charter for hazing and has gone underground. During the last week of pledging, none of the boys could say "I"- they had to refer to themselves in the 3rd person ("George says hi,"). Also, they weren't allowed to feed themselves- their pledge brothers had to feed them. It ws quite a sight to see these dirty boys in the cafeteria, saying, "Nate wants another french fry" and Scott feeding him the fries... not really subtle, were they?