They boys over at Crytek had a GDC session where they talked about "Spherical Blend Skinning." Basically it's a skinning method that takes into account an underlining muscle or bone structure so that the mesh doesnt collapse into itself. My question to you is, have you heard of "Spherical Blend Skinning," and have you used it?
Big technical explanation
http://www.cgg.cvut.cz/people/PhD/kavanl1/sbsi3d.pdf