Animation Problem: Walk cycle

Ok, here’s a problem I’ve been having, and so far I have been unable to figure out what is going on! Maybe you can help me get this one right?

So, I modelled this mouse, and created an armature for it . I did a walk cycle for it (which I still need to fine tune… ), got to the NLA stageand got the mouse walking in a straight line. So far, so good. My next task of course, was to create a path curve and associate the mouse with it. The result may be viewed here

http://www.mediafire.com/imgbnc.php/53c71c8f3c04e6f93a7df0eba82a9e1e4g.jpg

As you can see, this action resulted in the mouse taking a lying down position.
Then, I performed an “Apply scale and Rotation” (CTRL-A) function on both the curve and the mouse, and the result is a bit wierd: the body aligned properly, but the arms are stretched forward, as can be seen here

http://www.mediafire.com/imgbnc.php/cc9ba383b32d75874eb8870686d76fde4g.jpg

WHy is this happening? It beats me. The fingers are parented to little floating bones, to keep them aligned properly, as suggested by Bassam in the Mancandy tutorial. I suspected they could be causing the problem, so Iactually deleted them at one point, but the problem persisted. If you would like to take a look at the .blend file, it is here:

http://www.mediafire.com/?w3b9bz3mbvz

Any help would be much appreciated

Thanks, and best regards to all

Mark