I’m not entirely sure why this would start to happen, but my model has began to hover above the terrain. It has worked fine for ages, and after about 30 minutes of trouble shooting, everything seems to be fine. The only thing I did was remove a rigidbody attached to a completely different model. Considering everything appears to be in working order… any ideas?

http://i53.tinypic.com/kbxesz.png

The answer to this problem is right there in the screenshot! Your capsule collider is somewhat larger than the character model. You need to tune it so that the bottom of the green capsule lines up properly with the character’s feet! Alternatively (and this is what I always recommend for this kind of problem, regardless of how practical a solution it is), you should have a look at implementing the Unity Locomotion System- A fully functional character IK system for keeping your character’s feet where they’re supposed to go. It’s especially useful for bumpy terrain, because it keeps the feet exactly on the surface they’re supposed to be walking on. It requires a little setting up, and will change the way you program all your animation code (albeit by simplifying it somewhat), but is well worth the effort.

I just had a similar problem with spheres. Now sure how/when but they began to appear to hover about .25 units above the ground while rolling. I found out that somewhere along the line I had changed the default sphere collider radius from .5 to 1. For some reason, this caused them to appear to hover .25 above the ground. When I changed the Sphere collider radius back to .5, the problem went a way. I can increase the size by using the transform scale instead.