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Which program are you using for modelling?

Freeze Transformations, or whatever your program of choice calls zero'ing out the transform values. In Maya, go to "Modify > Freeze Transformations" and that should get you where you want to be. Might also help to delete the history on your model.

I've not had quite such an extreme example as this, but the transformation freezing and history deletion is what fixed the problem for me. Just be sure that your hat aligns to the head of the worm models exactly where they are after import.

Yeah, if you are using 3ds max, after positioning a hat you should set its pivot point to (0,0,0) and reset XForm (from the Utilities panel), that's the only way I have found to export an item with proper position, rotation and scale. Good luck :3

Hey this was really useful, but I have another problem with 3Ds MAX, my models are too Glossy and can't find how to fix that, I think it's something about that alpha channel thing, but nothing happens when I edit it :(

I'm having trouble with the glossy thing too. Have you tried changing the alpha channel of the normal map to black? Seems to help me a little.

God. If you can solve the glossiness, DO let me know!

Hey guys, a friend tipped me off. Turn the Alpha Channel in your normal maps closer to black in the areas you want to be less glossy. So set it to a neutral grey to avoid getting too much gloss.

using 3ds max 2012, resetting xform and adjusting the pivot seem to have no effect on the orientation of my worms hat in the editor preview. its always rotated top->front so hes wearing it on his face.