@Clark: the exploding clothes problem has to do with interaction between a terrain and CC characters. It has been reported as a bug.
One workaround is provided in Arie's post above and is definitely the simplest.
What I have found is that if you put the terrain in after your CC characters they will not be distorted, but that is more of a hassle. If you have a terrain already in place, you would need to save it first as custom, delete it, put the characters in, and then put the terrain back.