A characterization of the blow-up It is well-known that there is a universal characterization of blow-ups. However, this one is not so easy to use. According to Hartshorne-Theorem II.8.24. The blow-up of a nonsingular $X$ along a nonsingular subvariety $Y$ have three properties:
1. The blow-up $\tilde{X}$ is nonsingular.
2. The blow-up restricts to the exceptional divisor $\tilde{Y}$ is the projective bundle $P$ of the normal bundle of $Y$ in $X$.
3. The normal sheaf $N_{\tilde{Y}/\tilde{X}}$ corresponds to the $P(-1)$.
My question is that assume we have a projective birational morphism $f: \tilde{X}\to X$ with exceptional locus $Y$ on $X$. We assume both $X$ and $Y$ are nonsingular as before (even projective). Let $\tilde{Y}$ be the inverse image sheaf of $Y$. If $f$ satisfies the above three properties, must it be the blow-up of $X$ along $Y$? Especially, I want to see an example for a non-blowup having property 1,2. Thank you so much.
 A: 
Example (property 1 fails, but property 2 is satisfied)
Look for $f$ as the blow up of an ideal sheaf $\mathscr I$, so $\widetilde X=\mathrm{Proj}_X(\oplus_d \mathscr I^d)$. Then the pre-image of the subscheme $Z\subset X$ defined by the ideal $\mathscr I$ is given by  $\widetilde Z=\mathrm{Proj}_Y(\oplus_d \mathscr{I^d/I^{d+1}})$. Now if $X$ is Cohen-Macaulay and $Z$ is a complete intersection in $X$, (i.e., $\mathscr I$ is generated by a regular sequence), then $\mathscr{I/I^2}$ is locally free and 
$\mathscr{I^d/I^{d+1}}\simeq \mathrm{Sym}^d(\mathscr{I/I^2})$ and hence $\widetilde Z\simeq \mathbb P(\mathscr{I/I^2})$. 
Property #3 is kind of a red herring. The $(-1)$-twist is almost automatic, it comes from the construction of the blow up of $\mathscr I$. 
Finally, here is a simple concrete example:
Let $X$ be a plane (or any smooth surface) and $\mathscr I=(x^2,y^2)$ where $x,y$ are local coordinates at a point. The blow up will be the surface with a pinch point (locally around the interesting singularity defined by $x^2z=y^2$) with the singular line contracted to a point. I think it is relatively easy to check that this satisfies properties #2 and #3. 

To round things up Mike Roth in the comments below gives a nice example of a blow up along a non-smooth subvariety such that the resulting variety is actually smooth. 
