Setting it 1 will only round the edges, so if you get a good result with that you probably have a lot of polygons to start with in your mesh before you nurb it. If I were to do it, I would import the obj mesh (remember to cut up the body parts first in LW by simply cutting and pasting the various groups) then send it to the setup room, I would then assign the skeleton of the closest character to yours and then save the new figure, from there you would have to adjust the pivot points of the joints and all the blend zones.

Dominique Digital Cats Media