Ground contact and camera view.

Seems that all my objects are sinking midway through the terrain. This is not a problem as far as static objects, I just relocate their origin (after the fact). But as far as my main player, the origin of what's seen is above ground now since I relocated the origin before exporting the dts file, but the camera view is right at ground level (I can see below terrain at certain angles). How do I fix this problem?
I've searched many areas of the forum and practiced code that didn't seem to work for me. The issue is, I need to understand the problem is in theory before I add any more code.

Thanks