It's a vertex-weight issue. Not all of the vertex weights sum to 255 after conversion, so the vertices
get deformed incorrectly. There's a float-to-byte conversion routine when exporting weights. Perhaps some
accuracy is lost after the conversion, so the converted sum doesn't add up to 255 anymore.
GMF Vertex Dump:
[4192] bweights: 133, 121, 0, 0 (sum: 254)
[4193] bweights: 216, 18, 18, 1 (sum: 253)
[4194] bweights: 104, 90, 55, 4 (sum: 253)
[4195] bweights: 110, 94, 49, 0 (sum: 253)
[4196] bweights: 156, 94, 4, 0 (sum: 254)
[4197] bweights: 143, 66, 44, 0 (sum: 253)
[4198] bweights: 111, 103, 22, 16 (sum: 252)
[4199] bweights: 127, 91, 33, 1 (sum: 252)
...
Even a small discrepancy of 1 or 2 will cause distortion. All converted weights must sum to 255.
I added a fix to my GMF exporter, and everything looks ok now.
The fbx2mdl converter will have to be updated too. Note to Josh.