Why is my character not on the ground?

I have imported an animated character in FBX format and a small level with a ground plane from 3ds Max and am using the third person controller. The animations for the character all seem to work except for the fact that the character is clearly a foot or two off the ground. He is colliding with the terrain as his movement adjusts to the different heights such as small hills and bumps in the ground but his feet are not actually touching it.

Using Unity 4 and 3ds Max 2013


The green capsule in the image above is the collider. adjust it to the characters height. If the collider would be a few units down the Y axis, he would also be levitating over the ground because the invisible collider is telling him to