Not sure whether anybody has observed this.. Sometime ago in the territory customization we came across one very strange functionality in CRM version 6.1. This seems to be occurring from patch H onwards. This is moreover related to the developer perspective than that of the User.
You know that you can create new Territory in CRM from Administration –> Users –> Security –> New Territory.
After creating the new territory, you can go to back-end and check how the entry is made. You can find an entry for the newly created territory in Custom Captions table where both Capt_US and Capt_Code are updated for that territory. Also this territory caption record gets properly created in the Territories table.
There is also a provision for updating the Territory name which can be done from Administration –> Users –> Security –> Edit Territory. Now in the above case if you update the territory name from this section you can see the updated territory data in the CRM properly, but if you will observe at the back-end, you will find that in the Custom Captions table only Capt_US is updated and not the Capt_Code and also the caption is not updated in Territory table. It looks proper from CRM as there we can see the Capt_US value and not the others, but the back-end values not getting updated really come into the way of customizing territory section.
What you can do to overcome this problem is, you can write a Trigger on Custom Captions table so that as soon as the caption value gets updated in custom captions it will also update the code value and also the territory caption value in the Territories table for that particular Territory record.