Discreet have released an upgrade for Character Studio (for Max R3.x only!). The patch can be found here.

(continued...)

Changes for v3.03 are:
- Physique now properly automatically updates CS 2.2 physiqued files. You no longer need to re-initialize on import into CS 3.
- Biped problems from frame rate change after Mo-Flow and reset have been fixed.
- Some biped parameters were not correct until biped selected in motion panel.
- Several biped MAXScript bugs were fixed.
- Extracting footsteps with tolerance from z level is now working.
- Max no longer exits when resetting with crowds MAXScript instance open.
The full details are available here.