After importing a unit and welding to .001 and removing extra SV, the edges are squiggly and messed up... If i try to move a point, the line moves a bit as well, still retaining a curved shape. is there a way to fix this?

try this
Import it again, then quadrangulate (actually makes it easier to work on afterwards too.)
Then do a filter points with 0.001
Then remove the SV. or try to remove the SV first then filter points



BTW not sure what program you are using to do the conversion to get it into xsi but I know with 3D Unwrap if you save it as an obj the parts stay separate but you don't get bones, and if you save it as a .xsi you get bones but all the mesh parts are all smooched together.

ok, thanks

i use Rep's meshtool 4

ok i got it. it fixed the curved lines when i enveloped the model