I've applied it to the shoulders and torso but I don't really see any changes, except when I flip them, the mesh is inside-out, I don't think that's what I'm looking for. 
   In the tutorial, you say when applying the Reset XForm modifier and clicking "collapse to," the mesh will have their faces flipped. I don't see this happening. 
 Still, I Flip the normals and my mesh is inside-out. I export and assimilate, and in ModView, the mesh does not appear to be inside-out, it looks fine, but I expected the torso to be inside-out when I flipped the normals, and exported.  
 (Let me know if I confused you there, It's hard making things clear. :rolleyes: ) 
 I'm saying this because, applying the Reset XForm seems to do nothing. It's as if nothing was changed, and the mesh still appears corny. 
 I have 2 gifs from viewing the left and right side. It's probably a bad view, but the arm pit is stretched to the top of the shoulder, and it looks inverted.  
http://dragon.thebluestmind.net/manadragon/left.gif)  
http://dragon.thebluestmind.net/manadragon/right.gif) 
 I have a back-up just in case I mess up, for now, I'm trying to experiment and click things. I'm the kind of guy who can complicate simple things, so thanks for helping.