i downloaded your little dragon and took a look it is very unusual how it is bending before the body part that its suposed to bend. the joints are set up like how i would if i were making a model and the groups look like they're correct too. when i first started bending i looked at it in wireframe mode... and this is what got me confused... the red outline is the neck 5 when selected... the blue outline is what shows as neck 4 when i put the cursor over it. it doesn't even follow the mesh according to the wireframe. i tried everything i know to try and see what was the problem... i even brought your model into rhino to see if maybe there was a problem with the acutal mesh... but i can't seem to find anything wrong. i know this doesn't solve your problem... but i thought posting this pic might spark a solution to fix it in one of the better model makers. i hope you can get it figured out