Model Rigging with MakeHuman

Hi all ,
I am trying to make animations for the Android in which the user can navigate around the “world” in which the animation is in. To do this I choose to go the root of blender –> collada export –> jPCT-AE import.

To start it I had no knowledge about designing or rigging so I used MakeHuman to import a model and armature. Since it’s for Android OS I decided to scrap the high poly model and armature and use the loy poly one it provides with the less advanced movement.

the problem is when I export the .blend to collada only certain movements are shown. I believe the problem is because the ‘bone’ on the hands and ankles which are the main movement bones are only children of the base bone and not connected to the arms/legs at all. (screenshot 4 in attachments in case the upload fails)

Now I tried changing this to make them children of the arms which i did (screenshot 5)

the problem is now the bones no longer have any movement but just rotate ( as in twist the arm) I know this will sound retarded to say but the ‘green’ arrow disappears when i parent them to the arm rather than the base bone . So essentially what im asking is how on earth can i keep them parented to the arms but maintain or recreate the range of motion they once had ??

Or is there a commonly used human model which has an armature that is available for download anyway ??
Thanks for any help you might be able to give,
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