For good measure click the 'FreezeM' button (lower right on the main control panel, under edit), then do what Talon suggested. That should definitely do the trick.
One thing I don't understand is in the tutorial I was following I was required to select a Geometry Approximation and make a local copy to export my _phys and _idle .smd's. So if I open this scene up after already having done this and change my model and want to export the original .smd again, do I need to undo this Geometry Approximation that I did? Is this something that I need to do every time I export the _phys .smd?
Are you talking about the automatic discontinuity? That is the only thing I see with default 60... So I need to check this on for the regular .smd, and off for _phys and _idle?
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Should be...
"On the MCP (right hand tool bar) click on transform.. and then reset all transforms"