Thanks, Reddog9, but I think I failed to clarify my question...

I know how to use Bone Heat in traditional way (parenting with Ctrl-P) but I thought that if you use the Armature MODIFIER (and not using the good old parenting at all) you still would have the same possibilities... However, if I'm completely confused, feel free to correct, I am known to misunderstand very clear intructions before... :lol:

So, the way you suggest, doesn't need the modifier itself at all. So what I'm asking, is simple explanation how to use this new modifier version of rigging/skinning.

Sorry, if I'm not making sense. Maybe I don't just see something obvious.