The last example (most right) from PyrZern is what you have, and what you want to avoid, because it collapses the model's volume. As the picture says, you want to at least have two loops in and out like the middle example.
After re-reading the instructions, I get what you are saying. In my previous rigging attempts I always tried to prevent the joints from eating another, but never had any luck. I fixed the model to work like the first example, and it works much better. Thanks for the advice.