What's happened here is that Vicki's head moved from its original position sometime during the morphing process - so that movement has become part of the morph. The movement could have occurred while getting the mesh to work with, or while it was in LightWave. For the first, I recommend using only the original mesh (from the Geometries folder) rather than an exported one. As for the second, you know more about LightWave than I do, but are there different ways of importing and exporting OBJ format? You may be able to fix it by trial and error, moving the head until the morph no longer has that effect. Or it might be easier to do it again. :)