smooth modifier in blender 2.57 breaks apart my model

Hi all,
I have a model (not mine, found it on http://artist-3d.com/ and I’m using it for experimentation purposes) imported from .3ds and whenever I try to use the smooth modifier she goes from the attached 1.jpg to 2.jpg. Technically I suppose the smoothing worked, but she looks like a cheap horror movie victim… the old blender 2.4x ‘set smooth’ option worked just fine on the same .3ds model.
What can I do to smooth her out without the mesh pulling apart?

Also, is there a way to ‘lock’ the edges of a hollow mesh such that the inflate tool in sculpting mode won’t pull her apart? That problem occurred in 2.4x also; seems to be an issue with hollow meshes (inflate basically pulls apart the faces and leaves them floating in space similar to what you see in the above pics but with the newly inflated bounds evident if not all visible per se).

Thanks,
CCJ

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The usual first thing to try is remove doubles (W / remove doubles) and recalculate normals (Ctrl+N) before any further options.

Aha, awesome that did the trick for both issues! Thanks!