The default Torque exporter for 3dsMax does not pay attention to system unit scale. It assumes one Max unit == one Torque unit. Sometimes, that's not what you want when modeling.
I have attempted to create a new version of the exporter, compiled for 3dsMax version 8 sp3, which pays attention to the system unit scale, and normalized to meters on export. Thus, if your system unit scale is inches, it will scale down all geometry by approximately 40 when exporting.
2006-09-15: This is the first release. I have not been able to test this extensively, because I don't have a lot of DTS content to test with. If you test it, and it doesn't work right, please send me email so we can work it out.
Click here to download the DTS exporter, choose one of the exporters from the ZIP file, and put it in your Max plugins folder. (I recommend the non-DEBUG version) Move the original DTS exporter from Torque out of the way while you're testing this. Re-start Max after changing the plug-ins -- and remember to save often!
The Physique to Skin Utility is also necessary, if your source art is using Physique. The DTS exporter only works with the Skin modifier. If you export with Physique, it will generate old-school keyframe vertex blending animation, which will be huge, slow, and inflexible. The utility is available from Sparks/Autodesk for 3dsmax version 3 through 7, but not for version 8 -- so I re-compiled the Sparks source code for version 8, and put in this archive. I disclaim all other responsibility for it, and you use it at your own risk. Backup early, backup often, backup everything!