Mesh deforming all wrong!

Hi, ive never made a deform rig, only the simple ones, but when i apply one of my bones to the mesh and bends it, this happens:
http://img11.imageshack.us/img11/6569/screenshot20110706at636.png

Looks like a weight painting issue. Has the nose been weight painted yet?

maybe you could fix it and send the file? so I can study how it works?

Attachments

Fraggler.blend (898 KB)

Both armature & mesh have completely different location/rotation/scale (you can check this by selecting them and pressing Alt+ S/R/G).

To fix: when armature and mesh are placed exactly on each other, apply location/rotation/scale with Ctrl+A on both objects. Then apply the armature to the mesh