diff --git a/examples/Importers/ImportMJCFDemo/ImportMJCFSetup.cpp b/examples/Importers/ImportMJCFDemo/ImportMJCFSetup.cpp
index 75f6b83b3..79fff963f 100644
--- a/examples/Importers/ImportMJCFDemo/ImportMJCFSetup.cpp
+++ b/examples/Importers/ImportMJCFDemo/ImportMJCFSetup.cpp
@@ -123,7 +123,7 @@ ImportMJCFSetup::ImportMJCFSetup(struct GUIHelperInterface* helper, int option,
 			gMCFJFileNameArray.push_back("mjcf/humanoid.xml");
 			gMCFJFileNameArray.push_back("mjcf/inverted_pendulum.xml");
 			gMCFJFileNameArray.push_back("mjcf/ant.xml");
-			gMCFJFileNameArray.push_back("mjcf/hello_mjcf2.xml");
+			gMCFJFileNameArray.push_back("mjcf/hello_mjcf.xml");
 			gMCFJFileNameArray.push_back("mjcf/capsule.xml");
 //			gMCFJFileNameArray.push_back("mjcf/hopper.xml");
 //			gMCFJFileNameArray.push_back("mjcf/swimmer.xml");
diff --git a/src/BulletCollision/CollisionShapes/btCapsuleShape.cpp b/src/BulletCollision/CollisionShapes/btCapsuleShape.cpp
index 283b0fb4e..0345501ce 100644
--- a/src/BulletCollision/CollisionShapes/btCapsuleShape.cpp
+++ b/src/BulletCollision/CollisionShapes/btCapsuleShape.cpp
@@ -16,7 +16,6 @@ subject to the following restrictions:
 
 #include "btCapsuleShape.h"
 
-#include "BulletCollision/CollisionShapes/btCollisionMargin.h"
 #include "LinearMath/btQuaternion.h"
 
 btCapsuleShape::btCapsuleShape(btScalar radius, btScalar height) : btConvexInternalShape ()
@@ -49,14 +48,13 @@ btCapsuleShape::btCapsuleShape(btScalar radius, btScalar height) : btConvexInter
 	btVector3 vtx;
 	btScalar newDot;
 	
-	btScalar radius = getRadius();
-
+	
 
 	{
 		btVector3 pos(0,0,0);
 		pos[getUpAxis()] = getHalfHeight();
 
-		vtx = pos +vec*(radius) - vec * getMargin();
+		vtx = pos;
 		newDot = vec.dot(vtx);
 		if (newDot > maxDot)
 		{
@@ -68,7 +66,7 @@ btCapsuleShape::btCapsuleShape(btScalar radius, btScalar height) : btConvexInter
 		btVector3 pos(0,0,0);
 		pos[getUpAxis()] = -getHalfHeight();
 
-		vtx = pos +vec*(radius) - vec * getMargin();
+		vtx = pos;
 		newDot = vec.dot(vtx);
 		if (newDot > maxDot)
 		{
@@ -85,8 +83,7 @@ btCapsuleShape::btCapsuleShape(btScalar radius, btScalar height) : btConvexInter
 {
 
 	
-	btScalar radius = getRadius();
-
+	
 	for (int j=0;j<numVectors;j++)
 	{
 		btScalar maxDot(btScalar(-BT_LARGE_FLOAT));
@@ -97,7 +94,7 @@ btCapsuleShape::btCapsuleShape(btScalar radius, btScalar height) : btConvexInter
 		{
 			btVector3 pos(0,0,0);
 			pos[getUpAxis()] = getHalfHeight();
-			vtx = pos +vec*(radius);
+			vtx = pos;
 			newDot = vec.dot(vtx);
 			if (newDot > maxDot)
 			{
@@ -108,7 +105,7 @@ btCapsuleShape::btCapsuleShape(btScalar radius, btScalar height) : btConvexInter
 		{
 			btVector3 pos(0,0,0);
 			pos[getUpAxis()] = -getHalfHeight();
-			vtx = pos +vec*(radius);
+			vtx = pos;
 			newDot = vec.dot(vtx);
 			if (newDot > maxDot)
 			{
@@ -134,11 +131,9 @@ void	btCapsuleShape::calculateLocalInertia(btScalar mass,btVector3& inertia) con
 	btVector3 halfExtents(radius,radius,radius);
 	halfExtents[getUpAxis()]+=getHalfHeight();
 
-	btScalar margin = m_collisionMargin;
-
-	btScalar lx=btScalar(2.)*(halfExtents[0]+margin);
-	btScalar ly=btScalar(2.)*(halfExtents[1]+margin);
-	btScalar lz=btScalar(2.)*(halfExtents[2]+margin);
+	btScalar lx=btScalar(2.)*(halfExtents[0]);
+	btScalar ly=btScalar(2.)*(halfExtents[1]);
+	btScalar lz=btScalar(2.)*(halfExtents[2]);
 	const btScalar x2 = lx*lx;
 	const btScalar y2 = ly*ly;
 	const btScalar z2 = lz*lz;
diff --git a/src/BulletCollision/CollisionShapes/btCapsuleShape.h b/src/BulletCollision/CollisionShapes/btCapsuleShape.h
index 04d1c89e8..aa65d5439 100644
--- a/src/BulletCollision/CollisionShapes/btCapsuleShape.h
+++ b/src/BulletCollision/CollisionShapes/btCapsuleShape.h
@@ -55,7 +55,6 @@ public:
 	{
 			btVector3 halfExtents(getRadius(),getRadius(),getRadius());
 			halfExtents[m_upAxis] = getRadius() + getHalfHeight();
-			halfExtents += btVector3(getMargin(),getMargin(),getMargin());
 			btMatrix3x3 abs_b = t.getBasis().absolute();  
 			btVector3 center = t.getOrigin();
             btVector3 extent = halfExtents.dot3(abs_b[0], abs_b[1], abs_b[2]);
@@ -87,14 +86,12 @@ public:
 
 	virtual void	setLocalScaling(const btVector3& scaling)
 	{
-		btVector3 oldMargin(getMargin(),getMargin(),getMargin());
-		btVector3 implicitShapeDimensionsWithMargin = m_implicitShapeDimensions+oldMargin;
-		btVector3 unScaledImplicitShapeDimensionsWithMargin = implicitShapeDimensionsWithMargin / m_localScaling;
-
-		btConvexInternalShape::setLocalScaling(scaling);
-
-		m_implicitShapeDimensions = (unScaledImplicitShapeDimensionsWithMargin * m_localScaling) - oldMargin;
-
+		btVector3 unScaledImplicitShapeDimensions = m_implicitShapeDimensions / m_localScaling;
+                btConvexInternalShape::setLocalScaling(scaling);
+		m_implicitShapeDimensions = (unScaledImplicitShapeDimensions * scaling);
+		//update m_collisionMargin, since entire radius==margin
+		int radiusAxis = (m_upAxis+2)%3;
+		m_collisionMargin = m_implicitShapeDimensions[radiusAxis];
 	}
 
 	virtual btVector3	getAnisotropicRollingFrictionDirection() const
diff --git a/src/BulletCollision/CollisionShapes/btConvexShape.cpp b/src/BulletCollision/CollisionShapes/btConvexShape.cpp
index b56d72917..8d7fb054d 100644
--- a/src/BulletCollision/CollisionShapes/btConvexShape.cpp
+++ b/src/BulletCollision/CollisionShapes/btConvexShape.cpp
@@ -230,14 +230,13 @@ btVector3 btConvexShape::localGetSupportVertexWithoutMarginNonVirtual (const btV
 		btScalar halfHeight = capsuleShape->getHalfHeight();
 		int capsuleUpAxis = capsuleShape->getUpAxis();
 
-		btScalar radius = capsuleShape->getRadius();
 		btVector3 supVec(0,0,0);
 
 		btScalar maxDot(btScalar(-BT_LARGE_FLOAT));
 
 		btVector3 vec = vec0;
 		btScalar lenSqr = vec.length2();
-		if (lenSqr < btScalar(0.0001))
+		if (lenSqr < SIMD_EPSILON*SIMD_EPSILON)
 		{
 			vec.setValue(1,0,0);
 		} else
@@ -251,8 +250,7 @@ btVector3 btConvexShape::localGetSupportVertexWithoutMarginNonVirtual (const btV
 			btVector3 pos(0,0,0);
 			pos[capsuleUpAxis] = halfHeight;
 
-			//vtx = pos +vec*(radius);
-			vtx = pos +vec*(radius) - vec * capsuleShape->getMarginNV();
+			vtx = pos;
 			newDot = vec.dot(vtx);
 			
 
@@ -266,8 +264,7 @@ btVector3 btConvexShape::localGetSupportVertexWithoutMarginNonVirtual (const btV
 			btVector3 pos(0,0,0);
 			pos[capsuleUpAxis] = -halfHeight;
 
-			//vtx = pos +vec*(radius);
-			vtx = pos +vec*(radius) - vec * capsuleShape->getMarginNV();
+			vtx = pos;
 			newDot = vec.dot(vtx);
 			if (newDot > maxDot)
 			{
@@ -427,7 +424,6 @@ void btConvexShape::getAabbNonVirtual (const btTransform& t, btVector3& aabbMin,
 		btVector3 halfExtents(capsuleShape->getRadius(),capsuleShape->getRadius(),capsuleShape->getRadius());
 		int m_upAxis = capsuleShape->getUpAxis();
 		halfExtents[m_upAxis] = capsuleShape->getRadius() + capsuleShape->getHalfHeight();
-		halfExtents += btVector3(capsuleShape->getMarginNonVirtual(),capsuleShape->getMarginNonVirtual(),capsuleShape->getMarginNonVirtual());
 		btMatrix3x3 abs_b = t.getBasis().absolute();  
 		btVector3 center = t.getOrigin();
         btVector3 extent = halfExtents.dot3(abs_b[0], abs_b[1], abs_b[2]);