Newton and Hooke first clashed over Newton's theory that white light consisted of different coloured lights. Later Hooke claimed that Newton had stolen great chunks of the Principia Mathmatica from him. Newton denied it, but it is now believed to be true. Hooke's manuscripts do indeed indicate that he did provide a big chunk of it in letters to Newton with Hooke having the theory of planetry motion and Newton coming up with the maths to prove it.
Hooke was a short man and the ".. standing on ye shoulders of giants." remark is thought to be a dig at this by some. If you put the phrase in context though it could actually take on a different meaning:
"What Des-Cartes did was a good step. You have added much several ways, especially in taking ye colours of thin plates into philosophical consideration. If I have seen further it is by standing on ye shoulders of Giants."
This is one of the few times Des-Cartes was complimented by Newton in any way. To me Newton seems to be saying that DC & Hooke did well, but he has used their work as a platform for his work.
I've never heard of Hooke being hunch-backed to any degree though and contemporary pictures of him certainly don't show it - this could be a case of no 'warts and all' though, because he was apparently scarred from having smallpox as a kid.
