Operating System:
Ubuntu Release 12.04 (precise) 64-bit
Kernel Linux 3.2.0-49-generic
GNOME 3.4.2
Blender Version: 2.70.1
I have attached a video for better explenation of the problem. But in short terms, bevel won't work properly on small scales, it makes the segments and distances fine but there is no curvature (radius) to the beveled edge it is flat as if it only had 1 segment.