Bone Heat Pushing Mesh Away

I’m sure this will turn out to be some stupid simple thing.

Where everything should be, and what happens after parenting to the armature with bone heat -

http://www.extinctionlevelevent.com/misc/blender/bone_heat_prob/bone_heat_prob01.jpg

Blend

yep - clear the pose locations before you parent

the armature isn’t in it’s rest position
(select all - alt G)