Download the 3ds max project file to see what are the settings to have a physic's effect like this !
-- http://www.megaupload.com/?d=PB1MZVRW --
Please check the ''havok 1 world's''' settings and the ''collision tolerance'' that i modified to have a realistic physic.
And check too the ''units setup''. I kept it in the defaut settings (with the inches) because to have a realistic physic you should put the ragdoll height to normal ... so I put about 6 feet or 72 or 75 inches.
I did the same thing for weight, that is to say that the head, for example, is supposed to be heavier than hands, torso, heavier than the head, etc. .. Consider a weight of about 7 per head and 3 for the hands (for example)
I've made this with 3dsmax 9.0 version
I wish this will help you dudes :)
peace