Human Meta-Rig (Head)

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it works without problems (in blender-2.61).
Do you know you cannot move the head-bone, you can only rotate it?
Do you know you can change the setting for the head-bone
to make the neck follow or isolate the head? (the sliders in the property at the right side (not left side) in the 3d-view-window).

If you want to move your head - like cartoon-style figures - then you have to disable in the armature (edit-mode) the “connected” option for the head bone. Then you can move it and make the neck stretch … scale…

And last, parts of the shoulder of your mesh have weights to the head-bone, those shoulder parts are moved, when the head/neck is rotated - and i think normaly this would not be wanted.