Armature bounding circle upside down

I have made my first animated character in blender, but I did not know anything about what the bounding circle was for until now. When I put a material on the mesh the character would fall half way into the ground and stop. That is when I figured out that the bounding circle is about where the pelvis is. Do I need to trash this and start over? I am not sure how this happened though to begin with, or when the bounding circle forms during the creation process.

The bounding circle is centered around the object center forever. You can change its size through the Size parameter in the F4 area. To move it, you’ll have to change where on the armature the object center is.

Thankyou for your devine insight :). I was able to manipulate the size of the bound object as you said and I shrunk the entire size of the character to fit inside of the bounds. I have been having one nightmare after another with this character- from ungrouped vertices, inverted faces, and now this. The character works fine but once I apply the dynamics/ material to the mesh all heck breaks loose.
I tried rotating the character to make the circle (bound box) at his feet but when put in a world he will flip upside down while doing the animations even after reaplying the LOC to the pelvice. Funny to watch but still frustrating. I believe all of this boils down to hitting the X-hash or Random buttons while experimenting. I wish these buttons where an add-on under a rock some place (only god would know how these setting would be useful anyway) because new-be’s will not know the consecuences until later as they add the textures. I hope all of this info will help somesome else not go through this frustration.

You can move the bounding circle. were you need it.
Once you have your bones how you want them.
Select The armature.Turn on dynamic so we can see the bounds.
Select all the bones in.Edit Armature Mode.Move the bones so the bouding
circle is were you want it .

When you exit edit mode the bounding circle.will stay at that location.
If you have parented the bones already.
When your done with the bones Select the mesh only and move it were it should be.

Here is a blend.To show how.
Good Luck.

I have done what you have said previous, but when I put him in the world he will flip upside down only while playing the animation. I believe I will need to delete all of my animations first because when I go into edit mode with tab it will allow me to move the mesh, but it will deform because the armature is attached to the groups of the mesh. I will use it to experiment. Thank you for trying to help me though :).

Those buttons are primarily for randoming/ordering particle effects.