BVH Animated Model Incorrect in Torque Show Tool

I can't figure out why my Blender character will not animate correctly in the Torque Show Tool. I can get a correct animation if I create my own armature and animate it myself. But importing a BVH motion is not working. Basically here is what I do:

- import my bvh file to create empties.
- Import my model and scale it to the empties' "skeleton".
- Reposition the empties so they are at my model's joints.
- Use the "BVH Empties to Armature" script to convert the empties into an armature.
- Rotate the model and the armature so they are standing upright in the front view.
- Set the model's center point the same as the armature's (0, 0, 0).
- Ctrl-A for both the armature and the model.
- Make the armature the parent if the model letting Blender create the vertex groups to the closest bone.
- Assign all vertices to an arbitrary bone with a weight of 0.001 to ensure that all vertices are attached to a bone.
- Parent the armature to Detail 32 in the example.blend file from the exporter's package.
- Set Blender's start and end frames.
- Export the DTS model with cyclic selected.

There are 31 frames and each frame is a keyframe. All bone's in the armature are unparented.

What I get is a model whose arms and legs are grossly deformed, way stretched out, and bizarrely animated. It's really creepy looking. I use this approach to create DirectX models. Below is the Blender file, texture, original and exported DTS models, log file, and the BVH file in zip format. If someone could take a look at it and see if they notice what is wrong, I would really appreciate it. I'm stumped. Thank you...

Torque.zip

Scott