Creating outline on model and bone issue.

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Alright, so I am porting some character models from Adventure Time Card Wars for iOS and Android, and I have a few issues.

1. In SFM, enabling the outline option doesn't affect the characters I've ported. Am I missing something in my qc file perhaps?

2. I assume the outline for the Borderlands 2 models are done by having the mesh copied, enlarged slightly and applied a black texture to, as well as $translucent. Does anyone have any experience on this topic?

3. This is my first time actually creating and skinning bones for characters, so I've probably made a mistake on the pelvis, but it would help if anyone has experienced the same and have a sulution.

Here's the issue:
[t]http://i.imgur.com/ljTuocd.png[/t]

As you can see, the bones doesn't match the legs. It works fine if I rename them to something other than Valve biped.
I created a pelvis bone, then used the rescale tool in 3ds max to strech it out to fit the hips. Perhaps this was the wrong move? I would love some input.