Is there a way to move the body of a character in order to match a reference picture. The charaters in bf1 have there hands up more in xsi, yet bf2 charaters have them downer, Id there a way to make on arm higher than the other and move legs in different positions yet still work when in game

There's literally no point to doing this. The 'default' position doesn't really matter to the game as they use the exact same skeletal structure. My own mod uses the BF2 Imperial Officer model (the unused one) which has its model in a different 'default' position to SWBF1.