Player object "setTransform" seems to ignore Z axis setting

Using the code from "levelLoader.cs" in the Game Programmer's Guide to Torque" I'm trying to create to NPC characters using the Player class. The 2 npc's appear on screen but half of their bodies is below ground. (see below). It doesn't seem to matter if I change the "z" element in "setTransform"; it just appears to ignore the setting. I've tried several different things, but nothing seems to work. Looked through "player.cc" line by line but couldn't find anything, nor searching the forums didn't find anything. I'm probably missing something very simple.

//-----------------------------------------------------------------------------
// NPC datablocks
//------------------------------------------------------------------------------
// Female Camper datablock
datablock PlayerData(FemaleCamper : PlayerBody)
{
   shapeFile = "~/data/shapes/player/ChilaoFlats/CFcamperWoman.dts";
   scale = "0.12 0.12 0.12";
};
// Male Camper datablock
datablock PlayerData(MaleCamper : PlayerBody)
{
   shapeFile = "~/data/shapes/player/ChilaoFlats/CFcamper.dts";
   scale = "0.12 0.12 0.12";
};

exerpt from the "layOutNPC" function in "levelLoader.cs":

switch$($NPCCLASS[%blockType])
         {
            //2a
            case MELANIE:
	       echo("Loading NPC");
	       %dblock = "FemaleCamper";
	       %rot = "0 0 1 .7501";
	       %name = "Melanie";
	       %player = new Player(CFfemaleCamper) 
	       {
		      datablock = %dblock;
		      position = "-30.5281 -183.094 48.5536";
		      rotation = "0 0 -1 25.2101";
		      shapeName = %name;
		      //shapeName = "~/data/shapes/player/ChilaoFlats/CFcamperWoman.dts";
	       };
	       %curPos = %player.getPosition();
	       %posZ = getWord(%curPos,2);
	       %adjustedElevation = %posZ + $npcCentroidOffset;
	       echo("%adjustedElevation = ",%adjustedElevation," %posZ = ",%posZ);
	       %curPos = setWord(%curPos,2,%adjustedElevation);
	       serverCMDNPCsetTransform(%player,%curPos);
	       echo("Melanie 2 - adjusted Transform = ",%player.getTransform());
	       echo("Melanie Centroid = ",getBoxCenter(%player.getWorldBox()));
	       
               npcGroup.add(%player);
               
	 case TOM:
	       %dblock = "MaleCamper";
	       %rot = "0 0 1 .7501";
	       %name = "Tom";
	       %player = new Player(CFMaleCamper) 
	       {
		      datablock = %dblock;
		      position = "-32.5281 -183.194 49.0536";
		      rotation = "0 0 -1 25.2101";
		      //scale = "1 1 1";
		      //shapeName = %name;
		      shapeName = "~/data/shapes/player/ChilaoFlats/CFcamper.dts";
	       };
	       %curPos = %player.getPosition();
	       %posZ = getWord(%curPos,2);
	       %adjustedElevation = %posZ + $npcCentroidOffset;
	       echo("%adjustedElevation = ",%adjustedElevation," %posZ = ",%posZ);
	       %curPos = setWord(%curPos,2,%adjustedElevation);
	       %player.setTransform(%curPos);
	       %player.setTransform("-32.5281 -183.194 55.0536 0 0 -1 25.2101");
	       echo("Tom 2 - adjusted Transform = ",%player.getTransform());
	       echo("Tom Centroid = ",getBoxCenter(%player.getWorldBox()));

               npcGroup.add(%player);
         }

exerpt from "console" log showing echo's from above code:

Quote://-------------------------------------------------------
// console log exerpt
//------------------------------------------------------

Loading NPC
%adjustedElevation = 58.5536 %posZ = 48.5536
Melanie 2 - adjusted Transform = -30.5281 -183.094 58.5536 0 0 -1 0.439999
Melanie Centroid = -30.5281 -183.094 59.7036
%adjustedElevation = 59.0536 %posZ = 49.0536
Tom 2 - adjusted Transform = -32.5281 -183.194 55.0536 0 0 -0.999986 0.07736
Tom Centroid = -32.5281 -183.194 56.2036

Thanks for any help.
Norv