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When exporting from modeling programs such as 3DMax, you should select "generic" as units. Within Vizard, however, the only time you'll have to be careful that your units are measured in meters is when calibrating a stereoscopic display. Otherwise, everthing thing be scaled equivalently.
As for the Z axis behaving differently than X and Y, I strongly suspect you've got an error in your script for controlling motion. If you'd like to post the snippet of code that controls the motion, one of us can probably point out what's going on.
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