Ok, I have a Guy for my game, rigged and animated, with logic buttons applied(so that arrow keys move him, spacebar makes him jump, etc…) and I’ve tried everything anyone says. Applying bounds, making the object have dynamic bounds, even making an invisible box around the character with bounds applied to that, none of it worked. I need to figure this out, because my game project is temporarily at a halt. Can someone please tell me how to make this work?
The easiest way I know:
- Make invisible bounds around the character (just use the “Invisible” button in the Logic Panel)
- Set up parenting like this: Bounds are the parent of Armature, Armature is the parent of player model
- Put the player controls on the Bounds object, not on the player model.
- In the Logic Panel, set the Object Type of both the Armature and player model to “No Collision”.
Thanks a lot blendenzo! You saved my game. 
Hmmm… It worked at first, but now my character goes right through my landscape… Do you know what happened?
Well, I wouldn’t be able to tell what happened with out seeing the .blend file. I can only make guesses. I do know this:
If it was working at first, but then stopped working, that could only mean that you must have changed something.
A few things to check:
Make sure that the ground has collision turned on. Double check to be sure the armature and the player model are still set to “No Collision” (you might have accidentally undone this with Ctrl+Z or something) and the bounds has an appropriate Object Type and Bounds setting. Make sure the bounds are above the ground a bit so that there is no strange collision happening just when the game starts.
If none of that works, then it would be helpful if you could upload a .blend file.
Oh, yep, I accidentally got rid of the no collision on the armature :). Thanks, again!