Oh, man....I thought it was just me.
I downloaded a couple of free models off of Turbosquid to check the quality vs. my own work.
They were .max files, so obviously LW couldn't open them, so I downloaded the trial version of Max (which I find very convoluted by the way), and exported them for LW. Doesn't matter what format I exported with, they all show up in LW as 100 times larger than scale.
I have had similar problems with Poser, only everything is freaky small.
You'd think all these brainiacs running these companies could at least get together on something as simple and as important as SCALE!!
I know, they all feel they have the right set up, but as has been proven time and again, artists use many tools and are not exclusive when it comes to software.
You seem to be having a different problem though, that revolves around GC.
I've said it before, GC's claims of LW support is kind of dodgy, and when you bring it up it tends to get shuffled to the back, because I don't think anyone on the team actually uses LW.
I could be wrong, but I doubt it.
I get the impression that they, like many others, are enamored with Autodesk....it
is the industry standard, don't you know

.....
If Milkshape works, why don't don't you just import into it, then export out.
I know it adds an extra step in the workflow, but it will be faster than waiting for someone to fix what is undoubtedly a non issue to the PTB.
Cynical ?....Yes.
I'll be the one over here with the other LW users, not turning purple from holding my breath, lol....