Unfortunately, Faceshop was not mentioned until the sixth post. The earlier versions of this particular software did not function correctly and caused similar distortions throughout the mesh.  I am not suprised that it is still a problem.  The issue is whether the mesh has been over manipulated to the point that the vertices are no longer in their original positions.  The morph targeting may no longer work.  I don't think there is any way to save this project.