After rereading Hound of Tindalos I questioned the way we were playing before. I thought simply it moved to the closest investigator but it mentions inside a location. So does that mean that if there was a person in the street who was closer then another investigator that was in a location such as the police station...that then Hound would go after him, not the person in the street? Thanks.
Hound of Tindalos
Hounds ignore people in the street, Asylum, and Hospital, yes. If there are no valid targets in town, the Hound will not move.
Sweet, thanks again Tibs! 
IIRC, in the story about the hounds, they move inter-dimensionally. Angles are required for them to teleport to a victim. Such as the corners of a room. Without corners, they can't come get you.
Nghtflame7 said:
IIRC, in the story about the hounds, they move inter-dimensionally. Angles are required for them to teleport to a victim. Such as the corners of a room. Without corners, they can't come get you.
Yes, that's the idea. Hounds exist in angular time, outside of regular time, and travel through angles.