MilkShape / ms2DTSExporter produce strange (unusable) results

We're evaluating { MilkShape 3d + msBVHImporter + ms2dtsExporter } as possible tools to use in our art path. We're planning on using premade content - both models and BVH based motion capture files.

Note: The model files we are using are actually broken up into segments (instead of being a single mesh).

This is what occurs:

We import the model and the bones structure from the BVH file (without the animation)... We rig the bone structure to the model.

(See Rigged Model within MilkShape)

We import the animation from the BVH file (not importing the bone structure again). We add extra materials to specify the animation sequences (see next image to verify the syntax, etc).

(See Animated Model within MilkShape)

We use the DTS exporter to export to DTS. Next we use the 'ShowTool' to view the model... And this is where we find the strange results.

The tool automatically sets up a thread, but let me show the image where there is no thread first, so you can see the model in the show tool:

Model in ShowTool without a Thread

As you can see, the model looks fine, in this case.

However, when there is a thread (which is actually how it first appears in the ShowTool), it doesn't look right:

Model in ShowTool with a Thread

It's hard to tell without examining it from a few angles and in motion, but the feet of the model appear near the middle, the legs are higher than that, up to the dress, and then the model seems to be reflected downward (back across itself) with the chest apearing near the feet and the head at the bottom). The arms also appear more outward then they should (kind've like in the non-animated pos).

Version notes:

We've tried various versions of MilkShape:
1.6.6*
1.7.*

We're tried various version of the ms2dtsexporter:
Self built from the CVS repository
Version in binarty Torque download

Any help would be appreciated.