Parent with automatic weights Area Effect

Mkay so i made a character and riged it and as usual the rig doesnt work as planned.
The area around the bone that parents the vertecies to the bone is all to big.

Look at this image:


Now you can clearly see the area that blender parents the weight to the bone, and you can see its just to big.

Is it possible to decrease the range blender uses to set weights when automatic weight parents?

Normally Automatic weigh will not go out of boundary like that. Check to see object and armature scale is one. Check objects face normal, are they all pointing out? There should be no flipped faces. Is there any hole in the mesh? Do Remove Doubles.