I wasted a lot of time tracking this one down, so I figured I'd share to save some other some grief.
I tried oiling it. I tried adjusting it, I removed it and cleaned it. I slammed it hard, I slammed it soft. I pushed down and the right and on the left, nothing would work. I finally discovered the little latch would not going back to the right position. Here are some pictures of bad and good.
You can push this down with a key or a screw driver, and then the hood will close correctly. You don't even need to slam it.
Here's a close up of the hood latching mechanism. Simply push down on the piece of metal the arrow is pointing at.
Here's a picture with it pushed down. The WD40 had no impact
Also worth noting it's good to draw an arrow like I did in pencil for the spouse or mechanic.
(edited-added new images when imageshack lost the old ones)