Trouble rescaling model

[Titanic]

I have a model I want to use in SFM and I need to rescale it in Blender because it has jigglebones, which don't behave nicely when rescaled in SFM. The model consists of one armature and one mesh.

Here are the steps I tried in Blender to rescale the model, but the exported model looks wrong, specifically it seems to not get scaled in the Y direction, even though it looks correctly scaled in Blender. Are there any problems with these steps?

1.) Import the model into Blender.
2.) Unparent the armature from the mesh.
3.) Remove the armature modifier from the mesh.
4.) Rescale the armature and mesh the same amount.
5.) With the armature and mesh selected, press CTRL+A and select "Scale".
6.) Verify that the "Scale" transform for both the mesh and armature are all (1, 1, 1) when in Object Mode.
7.) Set the parent of the mesh to be the armature.
8.) Re-add the armature modifier to the mesh.
9.) Export the model.

[Zappy]

Try skipping steps 2, 3, 7, and 8. In addition, please show screenshots of in Blender both before and after scaling, and in Source both before and after scaling. You might also want to import the scaled SMD/DMX in a new Blender session, to see if the error is caused by Blender or not.

Also, while it is better to scale the contents of the SMD(/VTA)/DMX(es) itself/themselves, I should probably mention the $Scale QC command here as well.

[Titanic]

The $scale command works great, thanks.