I am also having trouble with this tool. In my case, it extracts the first 3 bands of a multi-band raster correctly, and then assigns the infinitesimal value to the rest. It is a single multi-band file and the point file and raster are in the same projection/datum/coordinate system. While it is a single file, it is, admittedly, a large file (127 bands). However, I was able to do such extractions in days past, so it appears it is related to 10.0. I'm on service pack 5 at the moment and cannot get it to work for me.