If the arms are too high try making an ikchain, if I remember correctly, which I probably don’t, just put these in the code and fiddle with them (lowering the numbers)
$IKChain "rhand" "ValveBiped.Bip01_R_Hand" knee 0.707 0.707 0
$IKChain "lhand" "ValveBiped.Bip01_L_Hand" knee 0.707 0.707 0
As for the hands, the original half life models have “detatched” hands, which shouldn’t get noticed in hl1’s animations but become obvious with the skeleton and animations of hl2, another thing is probably because the skeleton for the hl1 ragdoll and hl2 animations is different, if the bones are pushed in, they will reassume another position when animated, you COULD use the proportion trick to fix that, but I am not sure it works for something so subtle, you could try making manually his hands longer or bigger, since there’s no finger posing it won’t cause much issues.