Should be working. Sometimes I've had to move the time slider back and forth for the skin to update. There's a checkbox in the skin modifier's Advanced Parameters rollout "Always Deform" make sure it's checked. Do you have the latest service pack installed? Maybe you can make your first file available for us to download?
Whoa it just started working. I found this thread after reading an error message that started popping up. http://forums.autodesk.com/t5/3ds-max-3ds-max-design-general/quot-cocreateinstance-failed-quot-error-when-skin-modifier/td-p/4152704/page/2 Seems like it was a bug the whole time. Thanks for the help team.