You expectation is correct.
Dropping the Longsword on the Hunger Weapon should:
1) Change the Name in the title replacing weapon with Longword +1
2) Change the Weight from 0 to 4 pounds.
3) Change the Prof. from 0 to +3.
4) Change the Group from blank to Heavy Blade
5) Change the Properties from blank to Versatile
When you drop this created weapon in a character's inventory or on the combat tab in Weapons/Implements it should create a weapon that has a Base +4 vs. AC attack, Dam of a d8 with a bonus of Base +1 and Crit die of a d8. Properties should say Versatile and you should get a link back to the dropped weapon. If you drop the weapon in inventory you should automatically get an entry on the combat and if you drop the weapon in the combat tab you should also get an entry in inventory.