The "nogen" object is attached to the Hip as alternate geometry for when the "Figure-->Genitalia" is unchecked. If you remove the reference to it, there will be a hole in the hip when the figure is unchecked. The James figure works fine for me in both 1.2.0.1 and the legacy 1.0 (on a different computer). The only further suggestions I can make are: (1) Make sure all the used ".obz"'s are unzipped (2) make sure there are no references to any ".pmd" files in the ".cr2" (3) run the cr2 through the Legacy File Writer (from Netherworks Studios) to scrub P6 references like CenterOfMass, etc.